DURHAM –  Cree on Wednesday reported a loss of $227.9 million in its fiscal third quarter, and its shares fell 10 percent in after-hours trading as investors reviewed the latest data.

Cree’s revenue and revenue forecast both missed analysts’ estimates, triggering the sell-off. Cree (Nasdaq: Cree) shares on April 23 hit a 52-week high ($69.21) but closed Wednesday at $64.78.

The after-hours sell-off sent shares well under $65.

Cree CEO Greg Lowe put a positive spin on the quarter, also noting in a conference call that the company was in the process if selling off its Cree Lighting group in order to focus more attention and resources on its Wolfspeed power business.


“We delivered solid results in Q3 with non-GAAP earnings per share that exceeded the midpoint of our target range that was provided back on March 15. Once again, the results were driven by record sales and margin improvement in our Wolfspeed business and solid performance in our LED business,” Lowe told Wall Street analysts.

“In Q3, we took an important step in the transformation of the company with the pending sale of Cree Lighting to Ideal Industries. This transaction will allow us to sharpen our focus to accelerate Wolfspeed’s growth, while providing a terrific opportunity for the Lighting business and its employees to an expanded channel that strengthens its market position. We believe this transaction benefits all stakeholders as it unlocks value, increases management focus on the core business and supports our mission to accelerate silicon carbide and GaN adoption.”

The Durham-based company said it had a loss of $2.20 per share. Earnings, adjusted for one-time gains and costs, came to 20 cents per share.

Those results topped Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 16 cents per share.

Investors love Cree selling Lighting Products group for $310M; stock hits new high

The maker of power solutions technology and energy-efficient lighting posted revenue of $274.1 million in the period, which did not meet Street forecasts. Three analysts surveyed by Zacks expected $274.7 million.

For the current quarter ending in June, Cree expects its per-share earnings to range from 12 cents to 16 cents.

The company said it expects revenue in the range of $263 million to $271 million for the fiscal fourth quarter. Analysts surveyed by Zacks had expected revenue of $288.7 million.

Cree shares have increased 52% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $64.83, an increase of 66% in the last 12 months.

(The Associated Press contributed to this story.)

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