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What:Shares of Cree fell as much as 9.6% Wednesday after the LED specialist reported mixed fiscal-third-quarter 2015 results.
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So what: Quarterly revenue rose around 1% year over year to $409.5 million, which translated to a 47% decline in adjusted net income to $25 million, or $0.22 per diluted share. Analysts, on average, were expecting slightly higher adjusted earnings of $0.23 per share on lower sales of $405.8 million.
Cree CEO Chuck Swoboda explained, "Q3 revenue and non-GAAP operating profit were within our target range despite the impact of extreme winter weather this quarter. We're confident that we're on the right track and optimistic about the future growth in Lighting and potential upside from our Power & RF line."
Now what: Even so, Cree is also targeting current-quarter revenue of $420 million to $440 million, with adjusted net income per share of $0.24 to $0.28. The midpoint of both ranges sits well below analysts' expectations, which called for fiscal-fourth-quarter revenue and earnings of $434.4 million and $0.29 per share, respectively.
In the end, given its mixed results, disappointing guidance, and with shares of Cree already trading at a lofty 48 times trailing-12-month earnings, it's no surprise the market is taking a step back today.
The article Why Cree, Inc. Stock Dropped Today originally appeared on Fool.com.
Steve Symington 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.