Cree's Earnings Preview: Despite Short-Term Weakness Long-Term Growth Remains Intact

The company announced its preliminary earnings for the quarter on October 2, and the weak guidance led to an over 10% decline in its stock price. Cree lowered its revenue estimate to approximately $428 million, from its initial guidance of $440 million to $465 million. It also expects GAAP earnings to be below its previously announced target range of $0.25 to $0.30 per diluted share.