Image source: Cree.
Shares of Cree (NASDAQ: CREE) fell 13.3% in October, according to data from S&P Global Market Intelligence. A tepid first-quarter report brought the LED lighting specialist's share prices as much as 14.7% lower on Oct. 19 alone.
In the first quarter, Cree's revenue from continuing operations plunged 16% lower year over year to land at $321 million. Adjusted bottom-line earnings were roughly $0.09 per share, down from $0.14 per share in the year-ago period. Wall Street had expected earnings of approximately $0.11 per share.
Cree CEO Chuck Swoboda characterized the first quarter as a slate of "solid results," as the company continues to focus even more tightly on LED lighting products. The power controller and radio-frequency amplifier products under the Wolfspeed banner are on their way to Infineon in an $850 million cash transaction, leaving Cree with fewer non-core distractions.
Swoboda waxed downright poetic about this overarching goal in a conference call with analysts:
Mr. Market doesn't seem to agree with this vision at the moment, paying more attention to the short-term revenue damage than the long-term market and profit promises. Opportunistic investors who agree with Swoboda's projections might want to take advantage of the current share-price discounts.
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