Cree forecasts profit above estimates, shares rise
(Reuters) - LED maker Cree Inc's (CREE.O) forecast a higher-than-expected third-quarter profit, and reported quarterly results above analysts' estimates on a spike in sales at its lighting products business, sending its shares up 15 percent in extended trading.
The company said on Tuesday that it expects adjusted earnings of between 30 and 35 cents per share for the current quarter on revenue of between $325 million and $345 million.
Analysts on average were expecting earnings of 28 cents per share on revenue of $322.6 million, according to Thomson Reuters I/B/E/S.
Cree's net income rose to $20.4 million, or 18 cents per share, in the second quarter from $12.1 million, or 10 cents per share, a year earlier. Excluding special items, the company earned 32 cents per share.
Revenue rose 14 pct to $346.3 million as revenue at its lighting products business jumped 28 percent to $122.7 million. Revenue at the LED business, which accounts for more than half of Cree's total revenue, rose 4 percent to $201 million.
Analysts expected a profit of 30 cents per share, on revenue of $331.2 million.
Cree shares were trading at $38.36 after the bells. They closed at $33.47 on the Nasdaq on Tuesday.
(Reporting by Tej Sapru in Bangalore; Editing by Joyjeet Das)
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