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What's in the Offing for Cree (CREE) This Earnings Season?
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Cree Inc. is set to report fourth-quarter fiscal 2018 earnings results on Aug 14. The company underperformed the Zacks Consensus Estimate for earnings in two of the trailing four quarters, recording an average negative surprise of 45.6%.
Cree reported non-GAAP earnings of 4 cents per share in third-quarter fiscal 2018, which beat the Zacks Consensus Estimate of in line earnings. Further, earnings were up from 1 cent reported in the year-ago quarter.
The company’s revenues totaled $356 million, up 4.1% year over year. The figure surpassed the Zacks Consensus Estimate of $349 million.
Expect What?
The Zacks Consensus Estimate for the quarter under review is pegged at 8 cents, reflecting a year-over-year increase of 100%. Moreover, the Zacks Consensus Estimate for revenues is pegged at $401.8 million, up roughly 11.9% from the year-ago quarter.
Let’s see how things are shaping up prior to this announcement.
Factors Likely to Influence Q4 Results
Growing demand for LED products, recovery in utilization rates and continued cost cutting measures from the company’s end is expected to positively impact to-be-reported quarter results.
We believe that Cree’s cross licensing agreements will help the company to drive innovation. Further, it will aid the company to gain better traction, resulting in top-line growth.
Cree remains focused on driving growth in LED business. The company’s lighting products have been gaining traction among the likes of McLaren Health Care, American Airlines Center, Quest, Food Bank of Central & Eastern North Carolina and Reston Hospital Center in the past year.
Notably, Cree had acquired assets of Infineon Technologies. This acquisition will help Cree expand its Wolfspeed business portfolio and bolster position as a supplier of power and RF GaN-on-SiC power solutions.
Furthermore, this acquisition will help the company in positioning Wolfspeed in aiding faster 4G networks and the innovative transition to 5G networks. Further, it will allow the company to increase value for shareholders, employees and customers. This in turn will allow Cree to strengthen foothold in key markets including electro-mobility, renewables and next-generation cellular infrastructure needed for IoT.
Cree has three reportable segments — Lighting Products, LED Products and Wolfspeed.
Lighting Products revenues of $130.8 million (accounting for 37% of total revenues), were down 15% on a year-over-year basis. The Zacks Consesus Estimate for Lighting Products is pegged at $145 million.
LED Products revenues were $143.3 million, up 9% a year-over-year basis. This accounted for 40% of total revenues. The Zacks Consesus Estimate for LED Products is pegged at $155 million.
Wolfspeed revenues surged 46% year over year to $81.9 million and accounted for 23% of total revenues. The Zacks Consesus Estimate for Wolfspeed is pegged at $105 million.
Our proven model does not conclusively show that Cree is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cree has a Zacks Rank #3 and an ESP of 0.00%.
Stocks With a Favorable Combination
Here are some companies you may want to consider as our model shows that these stocks have the right combination of elements to post an earnings beat:
Palo Alto Networks, Inc. (PANW - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #3.
Cisco Systems, Inc. (CSCO - Free Report) has an Earnings ESP of +0.07% and a Zacks Rank #3.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
What's in the Offing for Cree (CREE) This Earnings Season?
Cree Inc. is set to report fourth-quarter fiscal 2018 earnings results on Aug 14. The company underperformed the Zacks Consensus Estimate for earnings in two of the trailing four quarters, recording an average negative surprise of 45.6%.
Cree reported non-GAAP earnings of 4 cents per share in third-quarter fiscal 2018, which beat the Zacks Consensus Estimate of in line earnings. Further, earnings were up from 1 cent reported in the year-ago quarter.
The company’s revenues totaled $356 million, up 4.1% year over year. The figure surpassed the Zacks Consensus Estimate of $349 million.
Expect What?
The Zacks Consensus Estimate for the quarter under review is pegged at 8 cents, reflecting a year-over-year increase of 100%. Moreover, the Zacks Consensus Estimate for revenues is pegged at $401.8 million, up roughly 11.9% from the year-ago quarter.
Let’s see how things are shaping up prior to this announcement.
Factors Likely to Influence Q4 Results
Growing demand for LED products, recovery in utilization rates and continued cost cutting measures from the company’s end is expected to positively impact to-be-reported quarter results.
We believe that Cree’s cross licensing agreements will help the company to drive innovation. Further, it will aid the company to gain better traction, resulting in top-line growth.
Cree remains focused on driving growth in LED business. The company’s lighting products have been gaining traction among the likes of McLaren Health Care, American Airlines Center, Quest, Food Bank of Central & Eastern North Carolina and Reston Hospital Center in the past year.
Notably, Cree had acquired assets of Infineon Technologies. This acquisition will help Cree expand its Wolfspeed business portfolio and bolster position as a supplier of power and RF GaN-on-SiC power solutions.
Furthermore, this acquisition will help the company in positioning Wolfspeed in aiding faster 4G networks and the innovative transition to 5G networks. Further, it will allow the company to increase value for shareholders, employees and customers. This in turn will allow Cree to strengthen foothold in key markets including electro-mobility, renewables and next-generation cellular infrastructure needed for IoT.
Cree has three reportable segments — Lighting Products, LED Products and Wolfspeed.
Lighting Products revenues of $130.8 million (accounting for 37% of total revenues), were down 15% on a year-over-year basis. The Zacks Consesus Estimate for Lighting Products is pegged at $145 million.
LED Products revenues were $143.3 million, up 9% a year-over-year basis. This accounted for 40% of total revenues. The Zacks Consesus Estimate for LED Products is pegged at $155 million.
Wolfspeed revenues surged 46% year over year to $81.9 million and accounted for 23% of total revenues. The Zacks Consesus Estimate for Wolfspeed is pegged at $105 million.
Cree, Inc. Price, Consensus and EPS Surprise
Cree, Inc. Price, Consensus and EPS Surprise | Cree, Inc. Quote
What the Zacks Model Unveils?
Our proven model does not conclusively show that Cree is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cree has a Zacks Rank #3 and an ESP of 0.00%.
Stocks With a Favorable Combination
Here are some companies you may want to consider as our model shows that these stocks have the right combination of elements to post an earnings beat:
Palo Alto Networks, Inc. (PANW - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #3.
CDK Global, Inc. has an Earnings ESP of +0.24% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cisco Systems, Inc. (CSCO - Free Report) has an Earnings ESP of +0.07% and a Zacks Rank #3.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>