CREE released results early warning or due to LED lighting market shift

U.S. LED giant CREE recently released results of early warning, lighting sales as expected. The company's share price plunged to a new low of more than 1 and a half years.

Needham & Companys, an investment firm, said that the LED lighting trend shifted from high power to medium power, making Cree's revenues and profits continue to face pressure. He believes that when Cree entered the Lunda benefits come into play, may be able to pick up.

CREE recently lowered at the end of September third quarter earnings (the fiscal year for the first quarter of 2015) to $428 million (about 2 billion 627 million yuan), lower than the previous estimate of $440 million (about 2 billion 701 million yuan), the main reason is that LED lighting revenues may decrease over the same period last year to $174 million (2 equivalent to about 1 billion 68 million yuan RMB).

The news came out, many analysts have lowered CREE rating or target price, including investment institutions Oppenheimer, Needham & Companys, etc.. Goldman Sachs in the middle of 9 will take the lead in the CREE rating to neutral, mainly due to the challenges of LED chip production capacity.

Investment institutions Needham & Companys analyst Edwin Mok said, CREE in the past the main high power lighting, but the recent market trend has shifted to power, is one of the reasons for the impact of CREE revenue. He believes that if the white Lunda benefits began to show, perhaps CREE will have to improve the performance and profit.

For more information about LED, please click on China LED network or pay attention to WeChat public account (cnledw2013).