CREE.O, Cree, Inc. ($55.86) /Earnings Preview: Pricing Pressure Intensi
Cree is scheduled to report F1Q/11 earnings Tues 10/19 after the close. Our channel checks show accelerating LED lighting adoption (good news), but also more pressure on pricing (bad news). We see little risk to the September quarter and are above consensus, but are concerned that margin guidance may disappoint.Fears of declining margins will continue to weigh on the stock. To reflect our concerns about pricing pressure, we are reducing our GM forecast for F3Q and 4Q/11 by 200 bps to 45%. This lowers our FY11 EPS to $2.60 and our target price to $65 from $75.
Cree, Inc. (CREE.O): Earnings Preview: Pricing Pressure Intensifying
