|Cree gains on FQ3 EPS beat, solid FQ4 EPS guidance|
Apr 26 2016, 16:15 ET | By: Eric Jhonsa, SA Eye on Tech, SA News Editor
In addition to beating FQ3 EPS estimates (while posting in-line revenue), Cree (NASDAQ: CREE) is guiding for FQ4 EPS of $0.16-$0.22, favorable at the midpoint to a $0.18 consensus. Revenue guidance is more cautious - $370M-$395M vs. a $391.4M consensus - but near-term sales expectations have been low, especially after Cree's April 5 warning.
FQ3 non-GAAP gross margin was 30.6%, -70 bps Y/Y. FQ4 GM guidance is at ~31.5%. A $9.3M Y/Y drop in GAAP operating expenses (to $113.6M) boosted EPS. $18M was spent on buybacks.
CREE +5.1% after hours to $25.85.
Cree's FQ3 results, earnings release