Shares in Durham-based Cree (Nasdaq: CREE) jumped more than 5 percent in after-hours trading Tuesday after the semiconductor and lighting technology firm reported earnings that beat Street expectations.
However, Cree is delaying the spin-off of its Wolfspeed group.
Cree said it is pushing back the IPO offering of the group focused on radio frequency and semiconductor related business to later this year. Led by board member Frank Plastina, Wolfspeed was designated to be spun off last September.
Cree reported fiscal second-quarter earnings of $14 million.
On a per-share basis, net income was 14 cents. Earnings, adjusted for one-time gains and costs, came to 30 cents per share.
The results beat Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 24 cents per share.
“We delivered on our goal of building financial momentum in Q2, with earnings that exceeded our targets driven by solid revenue growth, good margins and operating expense leverage,” said Chuck Swoboda, Cree’s Chairman and CEO. “Our lighting business continues to grow, the LED business has stabilized, and our Wolfspeed Power & RF division continues to make progress. Overall, we had a good first half of fiscal 2016 and are well positioned for a strong second half.”
The maker of energy-efficient lighting posted revenue of $435.8 million in the period, which also beat Street forecasts. Five analysts surveyed by Zacks expected $434.3 million.
For the current quarter ending in April, Cree expects its per-share earnings to range from 22 cents to 29 cents.
The company said it expects revenue in the range of $400 million to $430 million for the fiscal third quarter. Analysts surveyed by Zacks had expected revenue of $428.3 million.
Cree shares have fallen roughly 9 percent since the beginning of the year. In the final minutes of trading on Tuesday, shares hit $24.29, a decrease of 21 percent in the last 12 months.
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