Wed, Apr. 6, 12:46 PM
Wed, Apr. 6, 9:15 AM
Tue, Apr. 5, 5:37 PM
Tue, Apr. 5, 4:12 PM
Mon, Mar. 7, 12:45 PM
Mon, Mar. 7, 11:32 AM
- Though Cree (CREE -8.9%) has already taken steps to restructure its LED product (chip/component) ops, Canaccord thinks further moves may be needed. "We believe CREE's restructuring of its components business may have led the Street to conclude this business has bottomed, particularly when you look at the pro forma results. However, our recent checks (over 30 meetings throughout the supply chain) suggests further downside."
- The firm has cut its target by $2 to $24, while reiterating a Hold. It considers Street expectations too high in light of "perpetual" chip/component oversupply and lighting competition.
- The remarks come two weeks after Piper upgraded to Overweight, while citing positive lighting distributor checks and optimism about the chip/component restructuring. Northland also upgraded in February, while JPMorgan downgraded.
- Cree's LED product revenue rose 1% Y/Y in FQ2 (calendar Q4) to $153.4M, but gross margin dropped 440 bps to 34.7%. Lighting products revenue rose 11%, with gross margin rising 40 bps to 28.5%.
Mon, Feb. 22, 8:52 AM
- "Recent lighting distributor checks (which underscored solid volume growth in the order books for 2016) have prompted us to lift our forward estimates within the lighting business," says analyst Mike Ritzenthaler, upgrading CREE to Overweight from Neutral. The price target of $37 (up from $27) is 22% above Friday's close.
- "We believe that the restructuring of the LED products segment has positioned the business to post resilient mid-30% gross margins, while the trough-like Q4 profits for component producers could hasten curtailment of higher-cost capacity in Asia."
- He lifts his FY17 EPS estimate to $1.35 from $1.23.
Fri, Feb. 5, 9:57 AM
- JPMorgan's Paul Coster has downgraded Cree (CREE -1.2%) to Neutral. His target is $20.
- Coster is still upbeat about Cree's long-term prospects, but thinks "at this price level it is worth reconsidering the various risks and threats this company faces, including head on competition in the high-power [LED chip] space, tangential competition from mid-power, and margin pressure from the consumer product strategy."
- The downgrade comes with Cree having easily outperformed the Nasdaq thus far in 2016, aided by a Jan. 19 FQ2 beat. Shares gained yesterday on a Northland upgrade.
Thu, Feb. 4, 10:39 AM
- Believing the company's restructuring efforts will lead to improved results in 2016, Northland Securities' Tom Sepenzis has upgraded CREE to Outperform, and hiked his target by $5 to $35.
- The upgrade comes two weeks after Cree rallied following an FQ2 beat and mixed FQ3 guidance (soft revenue guidance, strong EPS guidance). Cost cuts are lifting EPS: GAAP operating expenses fell 1% Y/Y in FQ2 to $125.7M, and are expected to drop to $119M in seasonally weak FQ3; non-GAAP guidance is at $100M.
Tue, Jan. 19, 5:56 PM
- Though it beat FQ2 revenue (and EPS) estimates, CREE has guided for FQ3 revenue of $400M-$430M, below a $431.4M consensus. On the other hand, EPS guidance of $0.22-$0.29 is favorable at the midpoint to a $0.23 consensus.
- Job cuts are lifting EPS: GAAP operating expenses fell by $900K Y/Y in FQ2 to $125.7M. SG&A spend rose by $2.3M to $74.7M; R&D fell by $5M to $42M. Buybacks are also helping: $62M were spent on them in FQ2.
- Segment performance: LED product (chip/component) revenue +1% Y/Y to $153.4M; gross margin -440 bps to 34.7%. Lighting products +11% to $255M; gross margin +40 bps to 28.5%. Power/RF products -12% to $56.7M; gross margin -330 bps to 52.2%.
- Financials: Non-GAAP gross margin was 31.7%, flat Q/Q, down 220 bps Y/Y, and in-line with guidance. FQ3 GM guidance is also at 31.7%. Free cash flow was $42M. Thanks to buybacks, Cree's cash balance fell by $15M Q/Q to $617M; debt stood at $205M.
- Cree is up to $25.41 in after hours trading.
- Cree's FQ2 results, earnings release
Tue, Jan. 19, 4:09 PM
- Cree (NASDAQ:CREE): FQ2 EPS of $0.30 beats by $0.06.
- Revenue of $435.8M (+5.5% Y/Y) beats by $1.47M.
- Shares +3.5%.
Mon, Jan. 18, 5:35 PM
Dec. 29, 2015, 5:42 PM
Nov. 17, 2015, 12:13 PM
- John Replogle discloses he bought 5K Cree (CREE +2.1%) shares today at $23.30, raising his total stake to 32,739.
- Replogle previously bought 1,166 shares in June, and 5K shares in Oct. 2014. CEO Chuck Swoboda and lighting EVP Norbert Hiller have also bought shares this year.
- Cree is down 26% YTD, and 69% from an Aug. 2013 peak of $76.00. The LED lighting/component maker trades for 17x an FY17 (ends June '17) EPS consensus of $1.40.
- 11 days ago: Cree tumbles on Goldman downgrade
Nov. 6, 2015, 10:04 AM
- Believing Chinese competition (an ongoing issue in the mid-range LED chip market) is leading to deterioration in the growth and margin profiles of CREE's LED chip business, Goldman's Brian Lee has downgraded to Sell, and cut his target to $21.
- Lee also notes slowing growth for Cree's LED lighting ops, and suggests this is due to lower smart lighting exposure than peers. He's skeptical of M&A speculation, given Cree's recent business moves and the exit of several major firms from the LED market. His FY16 (ends June '16) and FY17 EPS estimates have respectively been cut to $0.95 and $1.17, below a consensus of $1.00 and $1.41.
- Cree's LED chip/component revenue fell 15% Y/Y in FQ1 (calendar Q3) to $148.2M, while its lighting revenue rose 11% to $248M. Shares are less than $1.50 away from a 52-week low of $23.11.
Oct. 21, 2015, 3:11 PM
- Up in after hours trading yesterday after posting an FQ1 beat and issuing FQ2 guidance that was below consensus at the midpoints, CREE has sold off today. Shares made a new 52-week low of $23.11 before bouncing a little.
- Ongoing margin pressure could be worrying the Street: FQ1 gross margin was 31.7%, -70 bps Y/Y and slightly below guidance of 32%. GM is expected to once more be at 31.7% in FQ2.
- Also: Cree's Power/RF chip unit (recently renamed Wolfspeed, due for an IPO) saw revenue drop 6% Y/Y to $29.3M, after rising 15% in FQ4. The division's gross margin fell 860 bps Y/Y to 49%. Management blamed lower RF transistor sales caused by delayed Chinese 4G network rollouts (peers can relate). It insisted both RF and power chip design activity remains strong, and that an IPO is planned for 2016.
- LED lighting product revenue (58% of total revenue) rose 11% Y/Y to $248M, with gross margin rising 300 bps to 27.9%. LED product revenue (chips/components, 35% of total revenue) remained under pressure, dropping 15% to $148.2M; gross margin fell 350 bps to 35.5%. Thanks to job cuts, GAAP operating expenses rose only modestly after backing out one-time charges, and $70M was spent on buybacks.
- FQ1 results/FQ2 guidance, PR
Cree, Inc. operates as innovator of lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications. It operates through the following segments: LED Products, Lighting Products, Power and RF Products segments. The... More
Industry: Semiconductor Equipment & Materials
Country: United States