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More on Cree (CREE): FQ3 misses across-the-board on declining revenue. Adjusted net income...

More on Cree (CREE): FQ3 misses across-the-board on declining revenue. Adjusted net income declined 50% Y/Y, despite being offset by better cost controls and a large tax benefit. The company also warns for FQ4, now seeing its EPS coming in around $0.20 - $0.26 per share on revenue between $295M - $315M. Street estimates were for an EPS of $0.28 on revenue of $323M. Shares -6.3% AH.
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Comments (3)
  • Jeremy Johnson, CFA
    , contributor
    Comments (783) | Send Message
     
    Never understood the valuation on this company with all the low cost country (and otherwise) competition.
    17 Apr 2012, 04:25 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2616) | Send Message
     
    The stock could fall into the low 20's and the valuation is still too high.
    17 Apr 2012, 06:23 PM Reply Like
  • Chris Lau
    , contributor
    Comments (1936) | Send Message
     
    It's the DSO, inventory, and declining margins that pose a high risk for shareholders in this company. (CREE) might see the mid-25's again. Optimism might lie in its strategy to sell to the retail...but until bulbs are priced competitively with regular bulbs, how will (CREE) have an advantage over other companies?
    17 Apr 2012, 07:16 PM Reply Like
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