Wolfspeed (NYSE:WOLF – Get Free Report) posted its quarterly earnings data on Wednesday. The company reported ($2.03) earnings per share for the quarter, missing analysts’ consensus estimates of ($1.99) by ($0.04), FiscalAI reports. The company had revenue of $155.00 million during the quarter, compared to the consensus estimate of $149.86 million. The firm’s quarterly revenue was down 21.2% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.55) earnings per share.
Here are the key takeaways from Wolfspeed’s conference call:
- Revenue was $155 million, above the midpoint of guidance, while power revenue rose 10% sequentially. Wolfspeed expects fiscal Q2 revenue of $155 million–$175 million and gross margin to improve toward break-even.
- Non-GAAP gross margin remained negative at 12.8%, and operating cash flow was negative $84 million. About $60 million of working-capital changes supported cash in the quarter, but management said most working-capital optimization is now complete.
- Wolfspeed said AI data-center revenue more than doubled year over year on a trailing 12-month basis, with an accelerating order book. It cited growing hyperscaler engagement, demand tied to high-voltage DC architectures, and a strategic-partner award from Megmeet.
- The company announced a conditional $1.5 billion, 30-year government loan commitment; the initial $600 million tranche is intended to refinance higher-cost debt, with management expecting more than $50 million in annual interest savings. Closing remains subject to further due diligence, a credit agreement, and financial and balance-sheet milestones, with completion targeted before year-end.
- Wolfspeed highlighted a majority-share long-term supply agreement with BorgWarner for its next-generation 800-volt SiC inverter platform, an expanded 200-millimeter wafer supply agreement with Infineon, and plans to extend its portfolio into GaN.
Wolfspeed Trading Up 1.3%
WOLF stock traded up $0.28 on Wednesday, hitting $22.70. The company had a trading volume of 4,080,917 shares, compared to its average volume of 4,723,260. Wolfspeed has a 12-month low of $13.48 and a 12-month high of $80.82. The stock has a market cap of $1.20 billion, a price-to-earnings ratio of -1.44 and a beta of 8.67. The stock’s 50-day simple moving average is $26.48 and its 200 day simple moving average is $30.17.
Analyst Upgrades and Downgrades
Several brokerages have recently weighed in on WOLF. TD Cowen began coverage on Wolfspeed in a report on Thursday, August 20th. They set a “hold” rating and a $25.00 price target for the company. Wall Street Zen lowered shares of Wolfspeed from a “sell” rating to a “strong sell” rating in a report on Saturday, September 19th. Susquehanna lowered their price objective on Wolfspeed from $30.00 to $25.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 21st. Weiss Ratings downgraded Wolfspeed from a “sell (d+)” rating to a “sell (d)” rating in a research note on Friday, October 23rd. Finally, Zacks Research upgraded Wolfspeed to a “hold” rating in a research note on Friday, September 25th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $23.33.
Get Our Latest Stock Analysis on WOLF
Wolfspeed Company Profile
Wolfspeed, Inc is a semiconductor company focused on silicon carbide (SiC) technologies. Its products are designed to support the conversion and management of electrical power in applications that require high efficiency, high voltage, and operation at elevated temperatures.
The company develops and manufactures SiC power devices, including metal-oxide-semiconductor field-effect transistors, diodes, power modules, and related components. It also produces SiC materials such as wafers and epitaxial substrates used by semiconductor manufacturers.
Featured Stories
- Five stocks we like better than Wolfspeed
- Why ExxonMobil and Chevron Reminded Investors to Keep it Simple
- Amazon Has Erased Its Earnings Sell-Off, But Is the Biggest Opportunity Still Ahead?
- onsemi’s AI Sales Surge 175%: Is a Stock Recovery Next?
- Energy Transfer’s Earnings Miss May Be Hiding Its Strongest Advantage
Receive News & Ratings for Wolfspeed Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Wolfspeed and related companies with MarketBeat.com's FREE daily email newsletter.
