Cree, Inc. | $CREE Stock | Shares Take A Hit On Fourth Quarter Earnings Miss


Cree, Inc. (NASDAQ: CREE)



Cree, Inc. (CREE), a global leader in LED lighting company yesterday announced their fiscal fourth quarter 2016 financial results. Cree reported fourth quarter earnings of $0.19 per share which missed analyst expectations of $0.20 per share. Cree reported fourth quarter revenues increased 2% to $388.4 million which beat analyst expectations of $385.8 million.


Cree, Inc. CEO’s Comments

“Fiscal 2016 was a year of progress towards our goal to build a more focused and valuable LED lighting technology company,” stated Chuck Swoboda, Cree Chairman and CEO. “We successfully restructured the LED business, improved commercial lighting fundamentals, refocused our consumer business on premium LED bulbs, and unlocked significant value with the agreement to sell Wolfspeed.”  Business Wire


CREE Technical Analysis

CREE opened trading yesterday at $28.14 which was up from the previous days trading of $28.04. CREE closed trading yesterday at $27.48 and crashed down after market to $25.33, equivalent to a 8% decrease from the closing price. Taking a look at the daily chart we can see the last time CREE traded below these levels was on July 13th when it traded at $25.08. Taking a closer look at the daily chart we can see that before the spike down CREE had been in a upward trend dating back to June 27th when it traded at $23.19. CREE has a float of 99.06 million shares and traded 2 times the normal daily trading volume on Monday. For trading purposes, I would like to see CREE open trading on Tuesday below $26.00 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

Cree, Inc. provides lighting-class light emitting diode (LED), lighting, and semiconductor products for power and radio-frequency (RF) applications in the United States, China, Europe, South Korea, Japan, Malaysia, Taiwan, and internationally. Its Lighting Products segment offers LED lighting systems and bulbs for use in settings, such as office and retail space, restaurants and hospitality, schools and universities, manufacturing, healthcare, airports, municipal, residential, street lighting and parking structures, and other applications This segment sells its products to distributors, retailers, and customers. The company’s LED Products segment provides blue and green LED chip products for use in various applications, including video screens, gaming displays, function indicator lights and automotive backlights, headlamps, and directional indicators. It also offers XLamp LED components and LED modules for lighting applications; and surface mount and through-hole packaged LED products for video, signage, general illumination, transportation, gaming, and specialty lighting applications. In addition, this segment provides silicon carbide (SiC) materials for RF, power switching, gemstones, and other applications. Its Power and RF Products segment offers SiC-based power products consisting of Schottky diodes, SiC metal semiconductor field-effect transistors, and SiC power modules for use in power supplies used in computer servers, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. This segment also provides gallium nitride (GaN) high electron mobility transistors (HEMTs) and monolithic microwave integrated circuits (MMICs) for military, telecom, and other commercial applications; and custom die manufacturing services for GaN HEMTs and MMICs. Cree, Inc. was founded in 1987 and is headquartered in Durham, North Carolina.  Yahoo Finance