Cree shares closed 5 percent higher Wednesday in the wake of the LED lighting company’s better-than-expected quarterly results.
The uptick in the Durham company’s shares wasn’t as strong as the up to 9 percent spurt the stock enjoyed in after-hours trading Tuesday. Cree released its fiscal second-quarter results shortly after the markets closed Tuesday.
Revenue totaling $413.2 million was down marginally from a year ago but bested the $412.3 million analysts expected. Net income after adjustments of $37.9 million also was down from a year ago but was 28 percent higher than Cree’s fiscal first quarter.
Cree makes the nation’s best-selling LED light bulbs, indoor and outdoor light fixtures, and components other companies use in LED lights. Its LEDs also illuminate mobile phones, TVs, car dashboards and more.
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CEO Chuck Swoboda told analysts during a conference call that “strong growth in LED lighting” was the key to the second-quarter results.
“Lighting revenue increased 33 percent year-over-year and 3 percent sequentially to $230 million, driven by double-digit growth in LED fixtures, which more than offset the expected lower LED bulb sales,” he said.
LED revenue fell 29 percent from a year ago as a result of lower demand, primarily in China.
“We are well-positioned to continue to win in LED lighting,” Swoboda said. “Our product pipeline is strong. We’re building good sales momentum and our brand is growing in the market.”