strong lighting sales drives cree\'s growth momentum in 2014
Cree, the leading LED manufacturer, released its results for the fourth quarter of 2014 and 2014 in August 12. Due to the strength in its portfolio, especially in the lighting section, the company reported an increase of 43%, and the company saw a 2014 increase in its revenue of 19% ($1. 65 billion). Higher revenue base improved GAAP and non- GAAP net income in 2014 was $0. 203 billion and $0. 124 billion, compared to $0. 155 billion and $87 million in the 2013 fiscal year. For Q4 2014, Cree reports that 8% of revenue is increasing continuously$436 million)and 5. Net income increased by 6%, which is good under the guidance of the company. Product innovation in the past few quarters has opened up new applications, increasing the return on LED, and in turn driving additional demand for Cree products. The continued momentum of growth, coupled with a strong balance sheet, has allowed Corey to respond flexibly to new opportunities in the market. We believe that LED penetration is expected to increase in the future, and Cree will benefit from this trend as one of the world\'s leading LED manufacturers. The company believes it has the ability to continue to expand its business in fiscal 2015 as LED adoption increases. Cree plans to continue to invest in R & D and SG & A to support its growth and other strategic initiatives. It expects revenue to grow faster than Operating expenses as it starts to gain incremental gains from investments over the past few years. The ever-expanding product line and growing brand momentum have enabled the company to achieve its goal of upgrading to LED lighting by 100%. Our price estimate for Cree $62 is a big discount over the current market price. We are updating the valuation for the company. Look at we of complete analysis Kerry herelighting sales strong growth of LED lamps LED light bulb for $0. 208 billion Cree the company last year 18% Q4 of lighting sales month-on-month growth 2014. Throughout 2014, the sector grew by 43% per cent annually. As demand in the backlight market approaches saturation, the general LED lighting market is expected to be the main growth driver for the LED industry. Cree has a fully integrated vertical business model and is a market leader in LED and LED lighting products. This puts the company in a position to leverage the global LED lighting transformation. LED lighting accounted for 15- Currently 20% of the global lighting market, LED market share is expected to grow rapidly in the next decade. In the past few quarters, rapid product innovation has opened up new applications, increasing the return on LED, and in turn driving demand for Cree products. The company claims to have made great progress last year with consumers in creating visibility for the Cree brand. Cree believes that the lighting industry will grow strongly, which will drive the growth of high-power and medium-power LED Lighting based applications. A year ago, Corey launched a $10 LED light bulb, achieving a milestone in LED adoption. LED bulbs are considered one of the biggest industry innovations in years and have been a huge success in Home Depot stores. The Cree bulb is the best-selling LED bulb in the United States. S. And help the Cree brand become a leader in LED consumer lighting. In order to cater to the growing consumer demand in the autumn lighting season, Kerui is constantly innovating and adding new bulb products. The company expects strong growth in LED fixtures and LED bulbs to drive growth in the lighting sector. To serve the growth in these areas, Cree\'s internal LED chip team focuses on distinguishing the high-performance, high-power LED chips of its LEDs in the market. Its LED manufacturing partners are focused on manufacturing some of the larger volumes, which allows the company to flexibly leverage its in-house plant to support new product ramps and reduce time-to-market for new technologies. Sharp can raise its gross profit margin by 37. 9%, Cree reported 2014 in the fourth quarter Gross profit margin of general accounting standards ( Including stocks. Based on compensation) Supported by higher sales and lower sales To produce new products, reduce costs and improve plant utilization. While the LED, power and RF margins are in line with the company\'s guidance, the lighting gross margin has increased slightly, mainly due to lower cost and higher productivity of LED fixtures. However, gross profit margin is lower this yearover- Due to the low profit margin of LED bulb sales throughout the year. The rise in the proportion of lighting sales has put pressure on Corey\'s overall gross profit margin, because the profit margin of lighting products is lower compared to LED components. A higher proportion of fast-growing Lighting LED market revenue is expected to put additional pressure on Cree\'s gross profit margin in the future. LED bulbs offset a more favorable combination of lighting at a reduced price. The company has reduced the price of the Cree LED bulb product line by 23%. However, Cree claims that the gross profit margin of LED bulbs will increase as it works to reduce the cost of LED bulbs. Although margins may still be under pressure in the short term, we believe Corey can manage to raise gross margin in the future. The increase in LED output, coupled with the reduction of new cost products, the reduction of costs and the improvement of plant utilization, will help to increase the overall gross profit margin of Cree. 2015 outlook for the first quarter Driven by strong growth in the lighting sector, revenue was between $0. 44 billion and $0. 465 billion. -GAAP and non- The gross profit margin of GAAP is 36. 9% and 37. 5% respectively. - Operating expenses are similar to 2014 in the fourth quarter. -Tax rate of 21. 5%. -GAAP and non- GAAP net income ranged from $30 million to $37 million and $48 million to $55 million, respectively. -GAAP and non- The EPS target is between $0. 25 to $0. 30 and $0. 40 to $0. 45 respectively. View Trefis | View interactive research ( Powered by Trefis) Get Trefis technology like our graph? Embed them into your own posts using the Trefis WordPress plugin.