The Gory Details on Cree's Double Fumble
Cree (NAS: CREE) reported earnings on Jan. 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 25 (Q2), Cree missed slightly on revenues and missed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and earnings per share shrank significantly.
Margins dropped across the board.
Cree reported revenue of $304 million. The 28 analysts polled by S&P Capital IQ predicted a top line of $310 million. Sales were 18% higher than the prior-year quarter's $257 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.25. The 28 earnings estimates compiled by S&P Capital IQ averaged $0.26 per share on the same basis. GAAP EPS of $0.10 for Q2 were 78% lower than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 34.7%, 1,240 basis points worse than the prior-year quarter. Operating margin was 4.3%, 1,740 basis points worse than the prior-year quarter. Net margin was 4.0%, 1,540 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $300 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $1.2 billion. The average EPS estimate is $.98.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,114 members out of 1,204 rating the stock outperform, and 90 members rating it underperform. Among 251 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 235 give Cree a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cree is outperform, with an average price target of $35.09.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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