We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cree recently reported preliminary third-quarter fiscal 2020 results owing to coronavirus impact. The company now anticipates third-quarter fiscal 2020 revenues to be roughly $216 million, compared with $274 million in the year-ago quarter and $240 million in the prior quarter.
Moreover, non-GAAP net loss is expected between 14 cents and 16 cents per share.
Notably, Cree had projected net revenues in the range of $221-$229 million on Jan 29. Moreover, non-GAAP net loss was expected between 9 cents and 15 cents per share.
Wolfspeed revenues are now anticipated to be $114 million, down from management’s previously projected $116-$120 million range.
Moreover, Led revenues are expected to be $102 million. Cree had projected Led revenues between $105 million and $109 million.
Estimates Going South
The Zacks Consensus Estimate for revenues is currently pegged at $221.2 million, indicating a decline of 19.3% from the figure reported in the year-ago quarter.
Further, the consensus mark for loss per share is pegged at 13 cents, down by a penny over the past month. Cree reported earnings of 20 cents in the year-ago quarter.
Cree is set to report final third-quarter fiscal 2020 results on Apr 29. Notably, shares are down 26.3% on a year-to-date basis, compared with the industry’s decline of 30.7%.
Capital Expenditure Plan Remains Intact
Cree also provided update related to the coronavirus (COVID-19) impact on its business.
Per CEO Gregg Lowe, the company’s manufacturing facilities in the United States are operating as essential businesses in states that have issued “shelter-in-place” orders.
Moreover, capital expenditure plan remains intact including construction of new facilities in New York and North Carolina despite coronavirus crisis.
Cree’s solid balance sheet and liquidity position, $951.5 million at the end of second-quarter fiscal 2020, is noteworthy.
Moreover, solid demand for IoT and robust adoption of SiC and GaN materials is expected to drive the company's performance in the long haul.
Zacks Rank & Stocks to Consider
Cree currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are Avid Technology , OSI Systems (OSIS - Free Report) and HP (HPQ - Free Report) . While Avid Technology sports a Zacks Rank #1 (Strong Buy), both OSI and HP carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Avid Technology, OSI Systems and HP is currently pegged at 20%, 12.5% and 2.16%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Cree (CREE) Preliminary Q3 Results Reflect Coronavirus Impact
Cree recently reported preliminary third-quarter fiscal 2020 results owing to coronavirus impact. The company now anticipates third-quarter fiscal 2020 revenues to be roughly $216 million, compared with $274 million in the year-ago quarter and $240 million in the prior quarter.
Moreover, non-GAAP net loss is expected between 14 cents and 16 cents per share.
Notably, Cree had projected net revenues in the range of $221-$229 million on Jan 29. Moreover, non-GAAP net loss was expected between 9 cents and 15 cents per share.
Wolfspeed revenues are now anticipated to be $114 million, down from management’s previously projected $116-$120 million range.
Moreover, Led revenues are expected to be $102 million. Cree had projected Led revenues between $105 million and $109 million.
Estimates Going South
The Zacks Consensus Estimate for revenues is currently pegged at $221.2 million, indicating a decline of 19.3% from the figure reported in the year-ago quarter.
Further, the consensus mark for loss per share is pegged at 13 cents, down by a penny over the past month. Cree reported earnings of 20 cents in the year-ago quarter.
Cree is set to report final third-quarter fiscal 2020 results on Apr 29. Notably, shares are down 26.3% on a year-to-date basis, compared with the industry’s decline of 30.7%.
Capital Expenditure Plan Remains Intact
Cree also provided update related to the coronavirus (COVID-19) impact on its business.
Per CEO Gregg Lowe, the company’s manufacturing facilities in the United States are operating as essential businesses in states that have issued “shelter-in-place” orders.
Moreover, capital expenditure plan remains intact including construction of new facilities in New York and North Carolina despite coronavirus crisis.
Cree’s solid balance sheet and liquidity position, $951.5 million at the end of second-quarter fiscal 2020, is noteworthy.
Moreover, solid demand for IoT and robust adoption of SiC and GaN materials is expected to drive the company's performance in the long haul.
Zacks Rank & Stocks to Consider
Cree currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are Avid Technology , OSI Systems (OSIS - Free Report) and HP (HPQ - Free Report) . While Avid Technology sports a Zacks Rank #1 (Strong Buy), both OSI and HP carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Avid Technology, OSI Systems and HP is currently pegged at 20%, 12.5% and 2.16%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>