Cree Q2 Profit Rises - Update

(RTTNews) - Cree Inc. (CREE) Tuesday reported an increase in profit for the second quarter driven mainly by a 20 percent increase in revenues, with both earnings and revenue in ahead of Wall Street estimates.

Durham, North Carolina-based Cree's second-quarter profit rose to $35.7 million or $0.29 per share from $20.4 million or $0.18 per share last year.

Adjusted earnings for the quarter rose to $56.8 million or $0.46 per share. On average, 19 analysts polled by Thomson Reuters expected earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

Cree's revenues for the quarter grew 20 percent to $415.1 million from $346.3 million last year. Analysts expected revenues of $412.46 million for the quarter.

Chief Executive Charles Swoboda said, "Fiscal Q2 was another strong quarter as revenue increased to a record $415 million driven by strong growth in LED fixtures and LED bulbs."

LED products revenue rose 7 percent, while lighting products sales jumped 42 percent. Power and RF products revenues rose 17 percent.

Gross margins dropped to 38.2 percent from 39.2 percent last year.

Looking ahead to the third quarter, the company expects earnings of $0.19 to $0.26 per share, adjusted earnings of $0.34 to $0.41 per share and revenues of $390 million to $420 million. Analysts currently expect third-quarter earnings of $0.40 per share on revenues of $413.55 million.

CREE closed Tuesday's trading at $62.83, up $0.33 or 0.53%, on the Nasdaq. The stock further rose $1.24 or 1.97%, in after hours trade.