🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

Wolfspeed shares tumble on weak guidance

Published 22/08/2024, 06:14 am
© Reuters.
WOLF
-

DURHAM, N.C. - Wolfspeed, Inc. (NYSE:WOLF) shares fell 6.5% in after-hours trading as the company's first-quarter fiscal 2025 revenue guidance fell short of analyst expectations, overshadowing its fourth-quarter results and strong year-over-year growth in electric vehicle (EV) revenue.

The semiconductor company reported fourth-quarter revenue of $200.7 million, slightly below the analyst consensus of $201.31 million but representing a 100% YoY increase in EV revenue. Adjusted earnings per share came in at -$0.89, missing estimates by $0.05.

For the first quarter of fiscal 2025, Wolfspeed projects revenue between $185 million and $215 million, below the analyst consensus of $211.7 million. This soft guidance appears to be the primary driver behind the stock's decline.

Despite the market's negative reaction, CEO Gregg Lowe highlighted positive developments, stating, "We achieved 20% utilization at Mohawk Valley in June and continued to see strong revenue growth from that fab." The company now targets its Mohawk Valley Fab to reach 25% utilization in the first quarter of fiscal 2025, one quarter ahead of schedule.

Wolfspeed is accelerating the shift of device fabrication to its 200mm Mohawk Valley Fab while assessing the timing of closure for its 150mm Durham device fab. The company also plans to reduce its fiscal 2025 net capital expenditure by $200 million.

For the full fiscal year 2024, Wolfspeed reported consolidated revenue of approximately $807 million, up from $759 million in the previous year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.