Wolfspeed's stock sinks as silicon-carbide chip company sees swelling losses
By Emily Bary
Company 'must remain keenly focused on scaling our materials and device capacity,' CEO says
Wolfspeed Inc. shares fell nearly 15% in Wednesday's after-hours action after the company posted a wider-than-expected loss for the latest quarter and also forecast steeper-than-anticipated losses in the current period.
The silicon-carbide chip company logged a fiscal fourth-quarter net loss from continuing operations of $113.3 million, or 91 cents a share, compared with a loss of $61.8 million, or 50 cents a share, in the year-prior period.
On an adjusted basis, Wolfspeed (WOLF) lost 42 cents a share from continuing operations, while analysts surveyed by FactSet were expecting a 20-cent loss per share.
Revenue increased to $235.8 million from $228.5 million, while analysts were projecting $224.5 million.
For the fiscal first quarter, Wolfspeed anticipates $220 million to $240 million in revenue and a 60-cent to 70-cent adjusted per-share loss. The FactSet consensus was for $234 million in revenue and a 29-cent adjusted loss per share.
See also: Cisco Systems had a strong quarter but its cautious full-year guidance pushes shares down
"With approximately $8.3 billion of customer design-ins secured in the last 12 months, customers are continuing to select Wolfspeed for their future silicon-carbide device needs, so we must remain keenly focused on scaling our materials and device capacity in fiscal 2024," Chief Executive Gregg Lowe said in a release.
The company noted in its earnings release that it's "incurring significant factory startup costs relating to facilities that we are constructing or expanding that have not yet started revenue-generating production." These costs are treated as operating expenses in Wolfspeed's financials.
-Emily Bary
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
08-17-23 0830ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
These Stocks Are (Still) Powering the Bull Market
-
5 Undervalued Energy Stocks to Play the AI Data Center Demand Boom
-
After Earnings, Is Lowe’s Stock a Buy, Sell, or Fairly Valued?
-
5 Stocks With the Largest Fair Value Estimate Cuts After Q1 Earnings
-
10 Stocks With the Largest Fair Value Estimate Increases After Q1 Earnings
-
Markets Brief: Inflation Back in the Spotlight
-
AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?
-
What’s Happening In the Markets This Week
-
3 Dividend Stocks for June 2024
-
After Earnings, Is Alibaba Stock a Buy, Sell, or Fairly Valued?
-
MongoDB Earnings: Slashing Valuation as Execution and Macro to Blame for Lower Guidance
-
Marvell Earnings: We Raise Our Medium-Term AI Forecast and Bring Our Valuation Up to $75
-
Zscaler Earnings: Impressive Traction in Emerging Products Drives Sales Growth for the Quarter
-
Dell Earnings: Raising Valuation on Strong AI, but the Stock Remains Severely Overvalued
-
After Earnings, Is Nvidia Stock a Buy, Sell, or Fairly Valued?
-
The 10 Best Companies to Invest in Now