Today’s Research Reports on Stocks to Watch: Sphere 3D Corp. and Cree Inc.
Sphere leaped ahead after releasing an outlook for its third quarter financial report that had Wall Street on its toes. Cree Inc. also moved higher despite no news. The company released its first quarter earnings report not too long ago that beat estimates.
RDI Initiates Coverage on:
Sphere 3D Corp.
Sphere 3D Corp. shares closed up 6.17% on Monday with around 566,000 shares traded. The company released a corporate update with a profit outlook that had traders excited. The containerization, virtualization, and data management solutions provider announced that its preliminary net revenue for the third quarter of fiscal year 2017 is expected to exceed $21.5 million. This would be a 16% growth compared to $18.5 million for the third quarter of 2016, and an 11% increase compared to $19.4 million from the previous quarter. Sphere also forecasts that the Adjusted EBITDA loss in the quarter will be the lowest level yet since it began reporting this metric in the fourth quarter of 2014. The company will be releasing its earnings on November 9, 2017.
Access RDI’s Sphere 3D Corp. Research Report at:
Cree, Inc. shares moved higher on Monday, closing the day up 5.15%. The stock traded nearly 3 million shares, which was significantly higher than its average of around 1.9 million shares. There was no news from the worldwide manufacturer and marketer of lighting-class LEDs yesterday, but earlier this month the company reported its first quarter earnings with shares rallied 16% the next day. Compared to $15 million or 15 cents in the year ago quarter, the company reported $4 million in earnings, or 4 cents a share in the first quarter. This was better than the 3 cent loss that Wall Street was waiting for. Williams Capital Group analyst raised their price target from $25 to $27 after the earnings release but maintain a "hold" rating. Analyst Cynthia Motz wrote that "guidance for F2Q18 was lower than expected, based on lingering softness in the lighting market, some supply chain quality issues, and potential hurricane impacts. Hence, despite CREE’s expectation that there will be some eventual improvement as new products come on line, given Lighting is still a large business segment, our near-term estimates have to come down." CFRA analyst Angelo Zino raised his target from $22 to $28 and said, "We like commercial lighting prospects, but are wary about its margin profile. We await to see if new CEO Gregg Lowe could unlock value, potentially via asset sales."
Access RDI’s Cree, Inc. Research Report at:
Our Actionable Research on Sphere 3D Corp. (NASDAQ: ANY) and Cree, Inc. (NASDAQ: CREE) can be downloaded free of charge at Research Driven Investing.
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