Wolfspeed Stock Takes A Hit After Hours - Here's Why
Portfolio Pulse from Ryan Gustafson
Wolfspeed, Inc. (NYSE:WOLF) reported Q2 earnings with losses of 55 cents per share, beating estimates but showing a 400% increase in losses from the previous year. Revenue was $208.40 million, slightly above expectations but down 3.56% year-over-year. The company highlighted record design wins of $2.9 billion, mainly in the EV sector. Non-GAAP gross margin dropped to 16.4% from 35.8% last year. Q3 revenue is projected between $185 million and $215 million, with a non-GAAP net loss of $71 million to $87 million. The Mohawk Valley Fab's revenue increased threefold. Despite positive aspects, WOLF shares fell 4.73% after hours.
January 31, 2024 | 9:49 pm
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Wolfspeed reported better-than-expected Q2 earnings but with a significant increase in losses from last year. Revenue exceeded expectations but decreased compared to last year. The company anticipates a non-GAAP net loss for Q3 and shares dropped after hours.
Despite beating earnings estimates, the increased losses and lower year-over-year revenue are likely to concern investors, contributing to the after-hours stock price decline. The cautious Q3 outlook may also weigh on investor sentiment in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100