Cree (CREE) Tops Q1 EPS by 1c, Q2 Guidance Falls Short

Cree (NASDAQ: CREE) reported Q1 EPS of $0.21, $0.01 better than the analyst estimate of $0.20. Revenue for the quarter came in at $425.5 million versus the consensus estimate of $418.67 million.

Cree sees Q2 2015 EPS of $0.21-$0.26, versus the consensus of $0.26. Cree sees Q2 2015 revenue of $425-445 million, versus the consensus of $444.4 million.

Business Outlook:

For its second quarter of fiscal 2016 ending December 27, 2015, Cree targets revenue in a range of $425 million to $445 million, with GAAP gross margin targeted to be 31.0%+/- and non-GAAP gross margin targeted to be 31.7%+/-. Our GAAP gross margin targets include stock-based compensation expense of approximately $3.1 million, while our non-GAAP targets do not. GAAP operating expenses are targeted to be approximately $129 million, and non-GAAP operating expenses are targeted to be approximately $106 million. The tax rate is targeted at 25.0%+/- for the second quarter of fiscal 2016. GAAP net income is targeted at $1 million to $7 million, or $0.01 to $0.06 per diluted share. Non-GAAP net income is targeted in a range of $21 million to $27 million, or $0.21 to $0.26 per diluted share. The GAAP and non-GAAP per diluted share targets are based on an estimated 103 million diluted weighted average shares. Targeted non-GAAP earnings exclude $0.20 per diluted share of expenses related to stock-based compensation expense, the amortization or impairment of acquisition-related intangibles, net changes associated with our Lextar investment, and charges associated with the LED business restructuring.

For earnings history and earnings-related data on Cree (CREE) click here.

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