Shares in LED manufacturer Cree (Nasdaq: CREE) soared more than 17 percent in early trading Wednesday following a Street-topping quarterly financial report on Tuesday.

Analyst Jonathan Dorsheimer at Canaccord Genuity reacted to the earnings by raising his target price for Cree shares to $39 from $37, according to Bloomberg.

Shares opened at $31.75 and hit a high of $34.50. They had closed Tuesday at $29.49 but buyers began driving up the price after the earnings report. At noon, shares held on to a 15-percent gain even as much of the Nasdaq surrendered Tuesday gains.

At the close, Cree finished up $4.59, or 15.6 percent, to close at $34.08.

Cree rebounded in revenues from the previous quarter with an 11 percent gain but still reported an 8 percent drop from one year ago and earnings were slashed by 49 percent.

The light emitting diodes manufacturer produced $243 million in revenue for the quarter ending June 26. That represents a drop from $264.6 million a year ago.

Earnings after adjustments for one-time and other exceptions fell to 28 cents, or $30.6 nillion, from 55 cents or $60.1 million for the same quarter a year earlier.

Analysts had expected 27 cents in earnings and revenues of just over $233 million.

Revenues did increase 11 percent from the third quarter.

Cree has been fighting an LED market in which oversupply is depressing prices. Its shares rebounded along with most of the Nasdaq from Monday’s selloff to gain $2.84 or 11.6 percent, closing at $29.49.

“Q4 results were in-line with our targets and we are encouraged by the 11% sequential growth in quarterly revenue,” said Chuck Swoboda, Cree’s chairman and chief executive officer, in a statement.

“Over the last fiscal year, we continued to have success leading the LED lighting revolution and growing our LED lighting business, while at the same time managing through a challenging business cycle for our LED component and LED chip product lines. As we look ahead to Q1, demand has improved from earlier in the calendar year and we are well positioned to continue to lead the LED lighting revolution.”

Cree ended up reporting $987.6 million in revenues for its fiscal year, That’s a 14 percent improvement from a year ago.

Net revenues after adjustments were $1.70 per share, or $186.8 million, a 4 percent increase.

Looking ahead to the current quarter, Cree forecast only a slight increase in revenues in the range between $245-$255 million with earnings between $28-$31 million, or 25-28 cents per share.

Those figures were less than analysts’ expectations of $253 million and 31 cents per share.

The news sent Cree shares down 49 cents, or 1.7 percent, in after-hours trading before a rally lifted the price to $30.40, up 91 cents from the close. That’s a 3.1 percent gain,

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