Oppenheimer Reiterates Perform on Cree (CREE) Following 4Q Report

August 17, 2016 11:03 AM EDT
Get Alerts CREE Hot Sheet
Price: $27.81 +0.69%

Rating Summary:
    12 Buy, 23 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 29 | Down: 29 | New: 23
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Oppenheimer reiterated a Perform rating on Cree (NASDAQ: CREE) following the company's 4Q earnings report. CREE reported Non-GAAP EPS of $0.19 on revenue of $388M vs. Street estimates of $0.20 and $386M. CREE is currently working towards the Wolfspeed sale and is expected to net ~$585M in proceeds with transaction expected to close by calendar year-end.

Analyst Colin Rusch commented, "As CREE works to close the Wolfspeed sale, we believe investors will be focused on the remaining business which guided Q/Q revenue down 6.3% at mid-range with non-GAAP continuing income at $6M-$11M. While the company is targeting growth with a new set of products, we believe investors are likely to be cautious on GM trajectory and incremental operating margins until the company has re-established a baseline and shows consistent performance in its lighting product business. We believe CREE would be well served to continue growing its lighting appliance and networking offerings to drive revenue and incremental operating margin. That said, we believe the established lighting sales channels to be challenging to disrupt, keeping us on the sidelines for now."

For an analyst ratings summary and ratings history on Cree click here. For more ratings news on Cree click here.

Shares of Cree closed at $27.48 yesterday.

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