Cree shares fell in after-hours trading Tuesday after the LED lighting company reported fiscal third-quarter net income that fell a penny per share short of Wall Street’s estimates despite slightly better-than-expected revenue.
The Durham-based company reported $409.5 million in revenue, up 1 percent from a year ago. Analysts polled by Bloomberg News expected revenue of $405.6 million.
Net income for the quarter that ended March 29 totaled $25 million, or 22 cents per share, down 48 percent from a year ago. Analysts had projected 23 cents per share.
Cree released its quarterly results after the markets closed Tuesday. Its shares fell as much as 6 percent in after-hours trading.
Cree makes the nation’s best-selling LED light bulbs, which are sold exclusively by Home Depot, as well as indoor and outdoor LED light fixtures and components that other companies use in LED lights. Its LEDs also illuminate mobile phones, televisions, electric signs and car dashboards.
Cree’s results were once again depressed by LED sales, which fell 23 percent. In recent years the industry has expanded capacity to the point where supply exceeds demand, which has hurt prices.
“Based on our current forecast, LED volumes should stabilize in Q4 and are targeted to improve in fiscal 2016,” CEO Chuck Swoboda said during a conference call.
Revenue from lighting products, on the other hand, rose 27 percent from a year ago. However, sales were down 3 percent from the previous quarter “as the severe winter weather in the Northeast delayed commercial fixture sales,” Swoboda said.
Lighting products sales totaled $224.1 million and accounted for 55 percent of total revenue in the latest quarter, up from 44 percent a year ago.
“We’ve continued to lead the market by driving LED adoption and have grown our LED lighting business to create a nearly $1 billion lighting company,” Swoboda said. LED lights are a small, but fast-growing, piece of the overall lighting market.
For the fiscal fourth quarter that will end June 28, Cree is projecting that revenue will range from $420 million to $440 million. Analysts have been projecting $433.6 million.
The company expects adjusted net income will range from $26 million to $31 million, or 24 cents to 28 cents per share. Analysts were projecting 29 cents per share.
Earlier Tuesday, Cree shares closed at $35.40, up 30 cents. Its shares have risen 10 percent this year.