Semiconductor company Cree, Inc. (CREE) on Tuesday raised its earnings and revenue forecast after it introduced a game-changing series of LED bulbs at a retail price point of below $10 that is significantly energy efficient and works better than a light bulb. The new LED bulbs are backed by a 10-year limited warranty and available exclusively at home improvement retailer Home Depot, Inc. (HD).
"Over the last couple of years we recognized that the consumer is instrumental in the adoption of LED lighting, but we needed to give them a reason to switch. We believe this breakthrough LED bulb will, for the first time, give consumers a reason to upgrade the billions of energy-wasting light bulbs," Chairman and CEO Chuck Swoboda said in a statement.
The new Bulb uses the 'Cree LED Filament Tower Technology' and comes at price points ranging between $9.97 for the warm white 40-watt replacement and $13.97 for the 60-watt day light. The Cree LED bulbs save 84 percent of the energy compared to traditional incandescents, but looks like a traditional light bulb.
The new Cree LED bulb also has a life of 25,000 hours or 25 times longer than typical incandescent light bulbs. The Cree 6 watts LED light bulb, a 40-watt incandescent replacement, delivers 450 lumens and is available in warm white or 2700K color temperature.
Meanwhile, Durham, North Carolina-based manufacturer of LED diodes, LED lighting, and semiconductor solutions for wireless and power applications, also raised its adjusted earnings guidance for the third quarter to a range of $0.31 to $0.36 per share from the prior forecast in the $0.30 to $0.35 per share range.
The company also raised its third-quarter revenue guidance to a range of $335 million to $350 million from the prior estimate between $325 million and $345 million.
Analysts polled by Thomson Reuters expect the company to report earnings of $0.33 per share on quarterly revenues of $336.06 million. Analysts' estimates typically exclude special items.
However, the company continues to anticipate gross margin for the third quarter to be similar to the second quarter, and adjusted gross margin to be around 39.5 percent.
Meanwhile, operating expenses for the third quarter are estimated to be about $2 million higher than the earlier projection, due to higher R&D and marketing costs to support the new product launch.
CREE closed Monday's regular trading session at $44.72, down $0.71 on a volume of 1.34 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.