This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Green Energy Losers: SemiLeds, Cree

(Cree and Semileds article updated with analyst commentary from Morgan Stanley, Canaccord Genuity analysts.)

NEW YORK ( TheStreet) -- Shares of Taiwanese LED company Semileds (LEDS - Get Report) are down more than 17% early on Tuesday after its second straight earnings miss and an outlook about LED market pricing and margins that remains weak and implies a miss next quarter as well.

It's the second straight quarter -- and the second earnings since the company went public -- that Semileds had posted an earnings disappointment. Shares are down 50% this year.

The LED market has been under intense pricing pressure due to an inventory glut, which has hit shares of LED bellwether Cree (CREE - Get Report) hard. Cree recently had to take down its revenue guidance for the upcoming quarter, stating that the inventory glut was taking longer to work through than the company had predicted.

While the businesses of Semileds and Cree are distinct, signs of pricing pressure and gross margin weakness in the LED market are a surface negative for the entire industry when reported by Semileds.

Cree was also down by Morgan Stanley on Tuesday morning to a sell.

Cree shares, which already fell to a new 52-week low last month with the revenue guide down, were down by 4% on Tuesday morning in early trading and reached near average daily trading volume within an hour of the market open.

Semileds revenue for the second quarter was $10 million and a loss of 5 cents per share. The consensus was for revenue of $11.5 million and earnings of 8 cents.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CREE $24.93 1.34%
LEDS $0.53 1.96%
AAPL $123.38 0.50%
FB $95.29 1.19%
GOOG $628.00 0.12%

Markets

Chart of I:DJI
DOW 17,630.27 +189.68 1.09%
S&P 500 2,093.25 +25.61 1.24%
NASDAQ 5,089.2060 +49.43 0.98%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs