Cree shares drop 9 percent
08/13/2014 11:33 AM
08/13/2014 11:34 AM
Shares of LED lighting company Cree fell 9 percent Wednesday as investors reacted to the company’s fiscal fourth-quarter results.
Analysts at Summit Research downgraded their rating on the Durham-based company’s stock from a “buy” to a “hold.”
Cree’s revenue rose 16 percent to $436.3 million in the fourth quarter that ended in June, but analysts were anticipating $443.6 million. Net income, on the other hand, rose 12 percent to $51 million, or 42 cents per share, which beat analysts’ estimates by a penny a share.
In addition, “some people are not so happy with the guidance,” said Hal Eddins, vice president at Capital Investment in Raleigh.
But, Eddins added, “I tend to be a long-term investor. I’m not disappointed with the numbers.”
Cree makes LED light bulbs and indoor and outdoor light fixtures as well as components other companies use in LED lights. Its LEDs also illuminate mobile phones, televisions, electric signs and car dashboards.
The company’s shares closed Wednesday at $44.81, down $4.39. The stock is down 28 percent this year.
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