Why Cree (CREE) Stock Is Declining Today

NEW YORK (TheStreet) -- Cree (CREE) shares are down -8.7% to $44.90 on Wednesday after the LED lights manufacturer guided its first quarter revenue below analyst expectations.

The company expects an adjusted first quarter EPS between 40 cents and 45 cents per diluted share on revenue between $440 million and $465 million. Analysts were expecting profits of 46 cents per diluted share on revenue of $469.78 million.

Analysts at Summit downgraded Cree to "hold" from "buy" in response to the disappointing guidance.

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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."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

CREE Chart CREE data by YCharts

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