Shares in Cree (Nasdaq: CREE) climbed more than 4 percent, or more than $1 a share, in after-hours trading Tuesday based on a positive sales forecast by the company.
Chief Executive Officer Chuck Swoboda said he expected sales of light emitting diodes to continue to be strong. Cree is one of the world’s top LED makers. It also produces semiconductors.
"Looking ahead, the global momentum for sustainable, energy-efficient lighting products continued to build with the passage of the new U.S. energy bill, which will require the use of more efficient lighting technology and should further accelerate the adoption of LEDs," Swoboda said.
Swoboda forecast profits of 14 to 16 cents per share for the current quarter. Analysts polled by Thomson Financial expected profits of 9 cents on $122.6 million in revenues.
For the third quarter of the fiscal year that ends March 30, Cree reported net income of $6.6 million, or eight cents a share. Excluding one-time expenses, profits were 14 cents per share, 3 cents higher than analysts’ forecasts.
Cree shares closed down 13 cents at $25.65 in trading Tuesday, then rose $1.10 to $26.75 in after-hours action.