Why Cree Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of LED specialist Cree (NAS: CREE) lit up the tape today, jumping by as much as 13% after the company reported fiscal first quarter earnings.
So what: Revenue jumped 17% to $315.8 million, which turned into adjusted net income of $31.8 million, or $0.27 per share, by the time investors reached the bottom line. Both top and bottom lines registered beats relative to analyst expectations.
Now what: Fiscal second quarter sales are projected between $320 million and $340 million. Multiple analysts cheered the results, with Needham boosting its price target to $32 and reiterating its buy rating as the company executes on vertical integration. Canaccord Genuity likes the higher margins, which should alleviate investor fears about commoditization.
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The article Why Cree Shares Jumped originally appeared on Fool.com.Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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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