Buoyed by its latest quarterly results, shares of LED lighting company Cree closed 8 percent higher Wednesday.
Cree’s rise came despite a 249-point plunge in the Dow Jones Industrial Average.
“While the LED space remains challenging, management’s restructuring efforts are beginning to bear fruit and margins have stabilized,” Cowen & Co. analyst Jeffrey Osborne wrote in a research note in reference to the fiscal second quarter results that Cree released after the markets closed Tuesday.
Last June Cree announced a $102 million restructuring of its LED business in light of a diminished revenue outlook; the job cuts that resulted mostly bypassed the Durham-based company’s U.S. workforce.
In the latest quarter, Cree’s revenue rose 5 percent to $435.8 million – ahead of Wall Street estimates. Adjusted net income of $30.5 million actually was lower than the $37,9 million in revenue recorded a year ago, but the bottom-line results were better than expected.
Cree produces LED light bulbs and also makes indoor and outdoor LED light fixtures and components that other companies use in LED lights. In addition, its LEDs illuminate mobile phones, televisions, electric signs and car dashboards.
Cree shares closed Wednesday at $26.31, up $2.02. The stock’s 52-week high, reached last February, exceeded $39.