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.
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.”