Why Cree (CREE) Stock Is Down in After-Hours Trading Today

NEW YORK (TheStreet) -- Cree  (CREE) fell in after-hours trading on Tuesday after the company reported fourth-quarter earnings results and issued first-quarter guidance that came up short of analysts' expectations.

The company, which makes LED lights, reported adjusted net income of $51.3 million, or 42 cents a share, up from $45.6 million, or 38 cents a share, in the same period one year earlier. Revenue increased 16% year-over-year to $436.3 million from $375 million. Analysts had expected EPS of 41 cents on revenue of $444.11 million.

For the full year, Cree reported adjusted EPS of $1.65, a 31% year-over-year increase from $1.32 in 2013, on revenue of $1.65 billion, a 19% year-over-year increase from $1.39 billion. Analysts had expected EPS of $1.64 on revenue of $1.65 billion.

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Cree also issued EPS and revenue guidance for the first quarter of 2015. The company expects adjusted EPS in a range of 40 cents to 45 cents on revenue in a range of $440 million to $465 million. The consensus estimate calls for EPS of 46 cents on revenue of $469.78 million.

The stock was down 7.01% to 45.75 at 4:28 p.m.

Separately, TheStreet Ratings team rates CREE INC as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CREE INC (CREE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."

You can view the full analysis from the report here: CREE Ratings Report

CREE Chart CREE data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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