Cree Inc (NASDAQ:CREE)
Cree, Inc. (CREE), a global LED, lighting and semiconductor power for power and radio-frequency company yesterday reported their fiscal first quarter 2017 financial results. Cree reported adjusted first quarter earnings of $0.15 per share which beat analyst expectations of $0.11 per share. Cree reported first quarter revenues of $321.3 million which fell short of analyst expectations of $324.2 million.
Cree, Inc. CEO’s Comments
“We delivered solid results in fiscal Q1, as Lighting, LED Products and Wolfspeed all achieved revenue and gross margins that were in line with our targets,” stated Chuck Swoboda, Cree Chairman and CEO. “We continue to make progress with our transition to a more focused LED lighting company and building a more valuable business by bringing better light to our customers.” Business Wire
CREE Technical Analysis
CREE opened trading yesterday at $25.06 which was up from the previous day’s trading close of $24.80. CREE closed trading yesterday at $25.20 and crashed down after market to $22.75, equivalent to a 10% decrease from the closing price. Taking a look at the daily chart we can see the last time CREE traded below these levels we have to go back to June 27th when it traded at lows of $22.72. Taking a closer look at the daily chart we can see that CREE has been in an overall downward trend dating back to July 27th when it traded at $28.98. CREE has a float of 99.95 million shares and traded 1.79 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see CREE open trading on Wednesday below $23.50 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.