Cree shares are up 2.7% to $57 in pre-market trading today.
The firm sees an worldwide interest in LED lighting growing and believes that Cree is positioned to be at the forefront of the growth.
"Based on strengthened demand for LED lighting, we believe CREE will deliver strong revenue and earnings growth in the coming quarters," Needham analysts said. "Longer term, we believe LED lighting is entering a phase of rapid adoption in multiple markets worldwide, and in our view CREE remains the best idea for investors to leverage this trend."
- The revenue growth came in higher than the industry average of 5.1%. Since the same quarter one year prior, revenues rose by 19.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CREE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.08, which clearly demonstrates the ability to cover short-term cash needs.
- CREE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, CREE INC increased its bottom line by earning $0.74 versus $0.38 in the prior year. This year, the market expects an improvement in earnings ($1.66 versus $0.74).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 74.9% when compared to the same quarter one year prior, rising from $20.40 million to $35.68 million.
- Net operating cash flow has slightly increased to $98.75 million or 6.63% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -9.91%.
- You can view the full analysis from the report here: CREE Ratings Report