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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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Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.