Cree, Inc. Falls On Disappointing Results (CREE, VLCCF, MHR, CTCM)
Cree, Inc.(NASDAQ:CREE) shares are hammered down by 7% t after the company reported a 50% fall in its third-quarter profit due to weak sales and increased overhead costs. Moreover, the company provided lackluster fourth quarter earnings outlook.
The company expects to earn 20 cents and 26 cents on revenue of $295 million to $315 million in the current quarter, well below analysts’ estimates of 28 cents and $323 million.
During the latest quarter, the company earned $9.5 million, or 8 cents a share, compared to a year ago profit of $18.9 million, or 17 cents a share. On an adjusted basis, the company would have earned 20 cents. Revenue during the period jumped 30% to $284.8 million. The company in January guided 18 cents to 25 cents a share in earnings on revenue of $290 million to $310 million.
Gross margin trimmed to 34.9% from 41.7% due to higher revenue costs. Overhead expenses soared 33%.
Knightsbridge Tankers Limited (NASDAQ:VLCCF) shares plunged over 6% as analyst at Evercore downgraded the stock to Equal Weight , citing cash flow risk and a likely dividend cut due to the shipper’s heavy spot market exposure.
Magnum Hunter Resources Corp (NYSE:MHR) shares slid 7% to $5.75 after the company agreed to acquire certain Williston Basin oil and gas properties from Baytex Energy Corp (USA)(NYSE:BTE) for ~$311 million, giving it greater exposure in one of North Dakota’s most active shale resource plays. MHR plans to increase its upstream capex budget by $75M-$225M, mostly to account for expected additional spending for the acquired properties.
CTC Media, Inc. (NASDAQ:CTCM) lost 1.35% to $10.95 as analyst at JP Morgan downgraded the stock to Underweight, citing increased competition and a declining audience share count at its flagship channel.