After the bell, shares were tumbling 9% to $52.81.
The semiconductor company recorded net income of 39 cents a share, a penny higher than analysts surveyed by Thomson Reuters had expected. However, revenue of $405 million was less than a forecast $407.29 million.
Cree said it expects revenue between $430 million and $460 million for its June-ending quarter and adjusted earnings of 38 cents to 44 cents a share. Analysts had anticipated net income of 44 cents a share and revenue of $435 million.
Must Read: Warren Buffett's 10 Favorite Growth Stocks
TheStreet Ratings team rates CREE INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CREE INC (CREE) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."