Cree Inc (CREE) is selling off in after hours trading more than 5% as traders “sell the news”.  A big quarter was already priced in and traders are taking some profits.  CREE beat both the consensus estimate of .44/share and the whisper number of .46 by posting a non GAAP EPS number of .47/share on revenues of $234 million. These numbers also beat the company’s estimate of  revenues in the $215 – 225 million range and an EPS in the range of.41-.44/share.  Comparing to last year’s quarter, revenues more than doubled and earnings nearly quadrupled, so a very impressive quarter once again. 

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CEO Chuck Swoboda commented on the quarter: “We achieved record revenue and net income again in Q3 due to a combination of strong LED demand and solid execution with our factory ramp.  The LED lighting revolution continues to gain momentum and we remain focused on extending our leadership position while we build the scale, cost structure and channels to win in the market.”

Looking ahead, the company sees another record quarter next quarter and is targeting revenue in the range of $255 – $265 million and non GAAP EPS in the range of .48 – .51/share.  With that kind of growth for next quarter, I can’t imagine shares of CREE will be down for long.  There is big support around 70 which it could pull back to and offer an entry.