LONDON, January 29, 2015 /PRNewswire/ --
Investor-Edge.com has issued free earnings research on Cree, Inc. (NASDAQ: CREE). On January 20, 2015, the company reported its financial results for Q2 FY15 (period ended December 28, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Cree&d=29-Jan-2015&s=CREE to read our free earnings review on Cree Inc. (Cree). During Q2 FY15, the company's revenue came in at $413.2 million. Chairman and CEO, Chuck Swoboda, stated that Cree has made solid progress in Q2 FY15 with operating margin higher than targeted due to improvement in gross margins in the lighting business. Our free coverage report can be accessed at:
During Q2 FY15, Cree's net revenue fell by $1.93 million from $415.09 million in Q2 FY14. The company's net revenue during the reported quarter came slightly above Bloomberg analysts' forecast of $412.31 million. On a GAAP basis, the company's operating margin declined to 2.5% in Q2 FY15 from 8.5% in Q2 FY14. The free research on CREE can be downloaded as in PDF format at:
In Q2 FY15, Cree's GAAP gross margin decreased to 33.1% from 37.5% in Q2 FY14. Meanwhile, the company's Q2 FY15 GAAP net income declined to $12.15 million, or $0.10 per diluted share, from $35.68 million, or $0.29 per diluted share, in Q2 FY14. Analysts from Bloomberg had expected the company to report GAAP net income of $7.52 million, or $0.06 per diluted share, in Q2 FY15.
On a non-GAAP basis, the company's gross margin for Q2 FY15 decreased to 33.9%, from 38.2% in Q2 FY14. Further, non-GAAP operating margin fell to 8.2% in Q2 FY15 from 14.0% in Q2 FY14. Cree's non-GAAP net income for Q2 FY15 stood at $37.95 million, or $0.33 per diluted share, compared to non-GAAP net income of $56.77 million, or $0.46 per diluted share, in Q2 FY14.
As of December 28, 2014, Cree's cash and investments stood at $829.93 million. As of the same date, the company recorded total accounts receivable of $218.96 million with 48 days of outstanding sales, and its inventory stood at $332.55 million, representing 108 days of inventory. Sign up and read the free analyst's notes on CREE at:
Mr. Swoboda informed that the LED lighting industry is still in the early stages, the company's new product pipeline is strong, sales momentum is building and Cree's brand is growing in the market. He also added that as evidenced by the company's significant share repurchase in Q2 FY15, the company believes that it is on the right track to continue growing and increasing profits over the next several years.
During Q2 FY15, the company repurchased 8.1 million shares of its common stock for $266 million. Cree is now authorized to repurchase shares of its common stock having an aggregate purchase price not exceeding $550 million for all purchases in FY15. In December 2014, the company closed on its previously announced investment in Lextar and acquired approximately a 13% common stock ownership interest for $80.5 million.
In its guidance for Q3 FY15, Cree targets revenue in the range of $395 million to $415 million with GAAP gross margin of 32.6%+/- and non-GAAP gross margin of 33.5%+/-. Further, the company anticipates GAAP net income in the range of $3 million to $8 million, or $0.03 to $0.07 per diluted share, and non-GAAP net income is targeted in the range of $23 million to $28 million, or $0.21 to $0.25 per diluted share. Visit Investor-Edge and access the latest research on CREE at:
On the day following the earnings release, January 21, 2015, Cree's stock surged 4.76% to end the session at $33.88. Since then, the stock has moved both ways with gains outperforming losses. However, on the last close, Wednesday, January 28, 2015, Cree's shares finished at $35.83, 2.79% below their previous day's closing price of $36.86, after vacillating between $35.58 and $37.47. A total of 2.15 million shares were traded which was below its three months average volume of 2.57 million shares. Over the previous three trading sessions, Cree's shares have fallen by 2.66%. However, the stock has gained 12.00% over the last one month and 11.43% in the past three months. Shares in the company closed above their 50-day moving average of $33.05. Furthermore, the stock has a Relative Strength Index (RSI) of 66.23.
Sneak Peek to Corporate Insider Trading
In the last one month, Cree reported four corporate insider transactions to the U.S. Securities and Exchange Commission (SEC). On January 21, 2015, three insiders purchased 1,918 shares at an average price of $33.87 per share, for a total value of $64,963. These transactions were done by Directors of the company - Robert A. Ingram, John B. Replogle and Anne C. Whitaker, who bought 775, 590, and 553 shares, respectively. Additionally, on January 22, 2015, Ms. Whitaker sold 624 shares at a price of $35.09 for a total value of $21,894. Complimentary in-depth research on CREE is available at:
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