Cree rallies on new LED bulb launch, Sterne Agee note

|By:, SA News Editor

Cree (CREE +4.8%) asserts its new TrueWhite Series LED bulb offer an unmatched color rendering index score of 93. A 60W-replacement bulb will sell for a relatively steep $19.97. (PR)

Meanwhile, Sterne Agee says Cree is set to sell a 3rd-gen A19 LED bulb through Home Depot that will have superior gross margins (reportedly in the mid-20s) than the current A19 bulb.

Cree shares were crushed last month after the company provided light FQ1 guidance to go with mixed FQ4 results, and reported its FQ4 lighting products gross margin fell 550 bps Q/Q in FQ4 to 25.1% thanks to the launch of cheaper LED bulbs such as the A19.