It’s warning season and investors didn’t like the guidance issued by Cree.
Higher customer inventories and pricing pressure forced Cree Inc to cut its third-quarter revenue and margin forecast, signaling another disappointing quarter from the LED maker.
Looking at the numbers, Cree said revenue would be $215 to $220 million versus a prior estimate of $245 to $265. Analysts on average had expected $254.8 million, according to Thomson Reuters I/B/E/S.
"Our customers had more inventory than we had expected," Cree Chief Executive Chuck Swoboda said on a conference call.
What should you make of these developments?
Find out from Canaccord analyst Jed Dorsheimer. Watch the video now!