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Warnings Season: Cree

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!




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Trader disclosure: On March 23, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long (AAPL); Tim Seymour is long (BAC); Tim Seymour is long (SBUX); Tim Seymour is long (TM); Tim Seymour’s firm is long (ANTO); Tim Seymour’s firm is long (NEM); Guy Adami owns (AGU); Guy Adami owns (C); Guy Adami owns (GS); Guy Adami owns (INTC); Guy Adami owns (BTU); Guy Adami owns (NUE); Guy Adami owns (MSFT); Steve Cortes is long (TM); Steve Cortes is long (GS); Steve Cortes is long (CSX); Steve Cortes is long (SDY); Steve Cortes is long (SO); Steve Cortes is long Crude Oil; Steve Cortes is short (F); Steve Cortes is short (BAC); Steve Cortes is short (UNP); Steve Cortes is short (SPY); Steve Cortes is short (DBA); Steve Cortes is short Natural Gas; Steve Cortes is short Wheat; Steve Cortes is short Soybeans; Steve Cortes is short Corn; Steve Cortes is short CAD/USD; Steve Cortes is short EUR/USD; Pete Najarian is long (AAPL); Pete Najarian is long (AAPL) call spreads; Pete Najarian is long (BAC) calls

BRIAN KELLY
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DOUG KASS
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COLIN GILLIS
**No Disclosures**

LARRY HAVERTY
The Gabelli Global Multimedia Trust Owns (NFXL)
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Larry Haverty is long (CBS)
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JED DORSHEIMER
Canaccord Genuity Inc. has received compensation from (LEDS) for investment banking services
Canaccord Genuity Inc. has received compensation from (RBCN) for investment banking services

MIKE KHOUW
Cantor Fitzgerald is a Market Maker in (RIMM)


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