In early premarket trade the stock is down 5.87% at $26.15.
Cree 1Q net income dives after Ruud acquisition
Light-emitting diode maker Cree Inc. said Tuesday that its first-quarter net income plunged 78 percent as it absorbed the costs of acquiring Rudd Lighting, and its guidance missed expectations.The hometown newspaper tried to be more charitable. From the News-Observer:
Cree shares fell $1.28, or 4.6 percent, to $26.50 in after-hours trading, after closing up $1.17, or 4.4 percent, at $27.78 in the regular session....MORE
The company also said that it sees second-quarter revenue of $300 million to $320 million with adjusted earnings of 25 cents to 28 cents per share. Analysts had been looking for revenue of $307.2 million on 32 cents per share of earnings.
transcript from yesterday's earnings call.
And from LUSA:
Equities research analysts at Kaufman Brothers lowered their price target on shares of Cree (NASDAQ: CREE) from $23.00 to $19.00 in a research issued note to investors on Wednesday. They currently have a “sell” rating on the company’s shares.Morgan Stanley had a "Tactical Sell" on the stock.
Separately, analysts at Wunderlich reiterated a “sell” rating on shares of Cree in a research note to investors on Tuesday. They now have a $20.00 price target on the stock, down previously from $25.00. Analysts at Sterne Agee cut their price target on shares of Cree to $55.00 in a research note to investors on Monday. Also, analysts at Morgan Stanley (NYSE: MS) cut their price target on shares of Cree from $38.00 to $35.00 in a research note to investors on Tuesday, October 11st. They now have an “overweight” rating on the stock....
Although historically cheap on various valuation measures I don't see what is going to catalyze an up-move.