Shares of Cree Inc. (CREE, Financial) jumped more than 5% on Wednesday after the company reported first-quarter 2019 results. The company posted earnings of 22 cents per share on $408.27 billion in revenue, a 13.3% year-over-year increase. It beat earnings estimates by 10 cents and revenue expectations by $0.98 million.
“Fiscal year 2019 is off to a strong start, with first quarter non-GAAP earnings per share that exceeded the top end of our target range driven by another quarter of robust growth in Wolfspeed combined with strong gross margin improvement in LED Products and Lighting," CEO Gregg Lowe said. "This is an excellent result given the headwinds facing the businesses related to tariffs and global trade tensions. While these headwinds may persist for some time, we remain optimistic about the opportunity to increase shareholder value over the long term by executing our strategic plan.”
Looking ahead to the second quarter, the company expects revenue between $398 million and $418 million. GAAP net loss is projected to be $5 million to $10 million, or five cents to 10 cents per diluted share. Non-GAAP net income is expected to be in the range of $15 million to $19 million, or 15 cents to 19 cents per share.
Shares of Vicor Corp. (VICR, Financial) jumped more than 11% on Wednesday after the company posted third-quarter earnings of 32 cents per share on $78.04 million in revenue, growing 37.2% year over year.
The gross margin increased to $39 million from $25.14 million in the year-ago quarter. The gross margin, as a percentage of revenue, increased to 50%.
"With increased production rates and improved productivity, Q3 gross margins reached 50% and, with reduced operating expenses, led to appreciably higher profitability," Dr. Patrizio Vinciarelli, the company's CEO, said. “Increasing profit margins reflect the leverage of our business model, while the broadening adoption of our highly differentiated solutions is beginning to reflect the substantial investments we have made in advanced technologies over the last fifteen years.”
Disclosure: The author holds no positions in any stocks mentioned.
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