Cree welcomes its new CEO with a quarterly financial report that beats the Street on revenue and matches expectations for earnings.

However, forecast doesn’t meet what analysts had predicted, and Cree shares quickly tumbled 7 percent.

Cree shares dropped to $27.27, or $2.07, from Tuesday’s close of $29.34 almost as soon as Cree announced its earnings after the market close.

Revenue slightly beat expectations at $360 million, just above expectations of $359.7 million.

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Adjusted earnings came in at 4 cents as expected by analysts polled at Yahoo Finance.

Looking ahead, Cree forecast revenue would be between $340-360 million this quarter, which fell below the $368 million of analysts.

Adjusted earnings are forecast to be between 1-4 cents, below the 7 cents forecast.

The news presents a mixed bag for new leadership.

“Cree is a company that’s known as an innovator with a long history of blazing new trails, and I’m excited to be part of this team,” said Gregg Lowe, the new Cree CEO who was named as replacement for Chuck Swoboda last month. “There are a number of opportunities and challenges in front of us, and I look forward to working together with our talented team to maximize those opportunities while dealing with the challenges head on.”

Cree’s revenue fell 3 percent year-over-year from $371 million.

Adjusted earnings a year ago were 15 cents.