Shares of Cree fell nearly 15 percent Wednesday after fourth quarter earnings missed analysts' estimates and its guidance was weaker-than-expected.

The LED light maker earned an adjusted 19 cents per share for its fiscal fourth quarter, a penny below estimates. The company also issued weak first quarter guidance, with a profit forecast between 10 and 16 cents adjusted, well below analysts' expectations of 22 cents, according to Thomson Reuters data.

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Sales forecasts were also below estimates. Investors and analysts are focused on weakness in the lighting products segment, which saw a 13 percent sales drop. Analysts were largely negative on the results, with some citing continued market share loss in its lighting business and others seeing upcoming structural problems in the LED components market.

CREE Stock Price - Cree Inc. Stock Quote (U.S.: Nasdaq) - MarketWatch

Analyst Stephen Chin believes there is still more downside risk to earnings estimates as this quarter's lighting revenue is seen falling 5 to 10 percent from Q4, on a smaller backlog. In a note to investors, Chin says he is also concerned that "China-based LED competitors could be preparing for another increase in supply," causing price pressure and limits to Cree's LED chip sales upside.

Chin does see one bullish case for Cree. Cree year to date Source: Asia Europe Stocks Commodities Currencies Bonds Funds ETFs Investing Trading Nation Trader Talk Financial Advisors Personal Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener Tech Mobile Social Media Enterprise Gaming Cybersecurity Tech Guide Make It Entrepreneurs Leadership Careers Money Specials Shows Video Top Video Latest Video U. Video Asia Video Europe Video CEO Interviews Analyst Interviews Full Episodes Shows Watch Live CNBC U.

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Cree stock crushed on weak outlook Cara Caruso caracaruso. Cara Caruso Markets Producer.