WASHINGTON (dpa-AFX) - Cree Inc. (CREE) Tuesday reported a 26 percent increase in profit for the first quarter, on a double-digit growth in revenue and stronger margins. Earnings for the quarter trumped estimates by a penny, while revenues that grew 17 percent fell short of expectations.
Moving ahead, the company detailed its financial guidance for the second quarter, the mid-point of which is below current market consensus. Shares of the energy-efficient LED lighting device maker rose over five percent in extended hours.
Cree, which manufactures LED diodes, LED lighting, and semiconductor solutions for wireless and power applications, said its revenues grew to $315.8 million from $269.0 million a year ago. Analysts estimated revenues of $317.89 million for the quarter.
Gross margin for the quarter advanced to 36.8 percent from 36.4 percent, while operating margin climbed to 5.5 percent from 5.0 percent last year.
Durham, North Carolina-based Cree's net income for the first quarter improved to $16 million or $0.14 per share from $12.8 million or $0.11 per share last year. Adjusted earnings rose to $0.27 per share from $0.25 per share a year ago. Analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.
Looking ahead to the second quarter, Cree expect earnings in the range of $0.12 to $0.16 per share, and adjusted earnings of $0.27 to $0.31 per share. Analysts currently expect earnings of $0.30 per share for the quarter.
Cree, which competes with Nichia Corp., Epistar Corp., OSRAM Semiconductor and Samsung LED Co., anticipate revenues in the range of $320 million to $340 million for the second quarter. Analysts currently expect revenues of $333.56 million for the second quarter.
CREE closed Tuesday's trading at $26.19, up $0.74 or 2.90%, on a volume of 2.3 million shares, on the Nasdaq. In after-hours, the stock gained $1.34 or 5.12%.
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