LTW, AP

RESEARCH TRIANGLE PARK, N.C. – Shares in Durham-based Cree (Nasdaq: CREE) plunged more than 13 percent Wednesday despite the company’s record earnings and revenue report on Tuesday.

Cree closed at $59.81, down 13.3 percent, and shares fell further in after-hours trading.

At noon, Cree traded at $59.75, down $9.21 or 13.4 percent.

Shares hit a low of $59.05 earlier in the day.

Investors didn’t like the fact Cree’s revenue forecast for the current quarter didn’t meet Wall Street expectations.

Cree, which produces materials for LED lighting products, said late Tuesday that it expects revenue of $270 million to $280 million for the three months ending in September. Analysts had forecast $284 million in revenue, according to a Thomson Reuters survey.

Shares tumbled $7.37, or 10.7 percent, to $61.59 in premarket trading.

However analysts did not see the shortfall as a bad sign for the company’s long-term health.

In a client note, Sterne Agee analyst Andrew Huang said he expects growth in the LED light market to accelerate over the next few years, and he said Cree’s stock will be the best way for investors to tap that growth.

"As is the case with any long-term secular story stocks, there are hiccups along the way," Huang said. He has a "Buy" rating on the stock.

Morgan Joseph analyst Ilya Grozovsky also kept a "Buy" rating on Cree.

In a client note, Grozovsky said Cree will need to expand capacity to keep up with "solid demand trends."

Cree set another record for revenues in its most recent quarter as demand for its light-emitting diodes drove income to $246.6 million.

Not only does the quarter represent a 79 percent surge over the same April-June period a year ago, it also set a record for the firm.

Revenues jumped 13 percent from the opening quarter of this year.

Excluding various expenses, Cree’s earnings for the quarter were 55 cents per share, up nearly 270 percent from the 11-cent share profit a year ago. That total topped Wall Street analysts’ projections of 51 cents.

For its fiscal year that ended in June, Cree reported income of $867 million, up 53 percent from a year ago.

Net income, meanwhile, more than quadrupled to $152 million.

Despite the record revenues and profits, Cree shares were hammered in after-hours trading immediately following the earnings report. Traders drove down the stock more than $6 or more than 10 percent.

At 8 p.m. Tuesday, shares traded at $63.31, down $5.65 ot 8.2 percent.

Cree closed regular trading at $68.96, down 3.7 percent or $2.63.