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Last Update: 23-Jan-13 08:10 ET
Cree shares soar 14% following beat on earnings and upside guidance
Cree (CREE $38.13 +4.66) reported second quarter earnings of $0.32 per share, excluding non-recurring items, $0.02 better than the Capital IQ consensus of $0.30, while revenues rose 13.9% year/year to $346.3 million versus the $331.06 mln consensus. The company issued upside guidance for the third quarter with EPS of $0.30-0.35, excluding non-recurring items, versus the $0.28 Capital IQ consensus and revenues of $325-345 million versus the $322.21 million consensus. "Fiscal Q2 was another strong quarter with record revenue and earnings per share that were higher than our target range due to stronger sales in both LEDs and Lighting combined with improved gross margins...Overall company backlog is in line with seasonal trends for our fiscal Q3. Longer term, we remain focused on driving adoption through innovation, and with our broad understanding of the technology levers from materials through systems, we see opportunities to move the market even faster than what has been experienced to date." For its third quarter of fiscal 2013 ending March 31, 2013, Cree targets GAAP gross margin targeted to be similar to Q2 and non-GAAP gross margin targeted to be 39.5%+/-.
