Wolfspeed (NYSE:WOLF) Posts Earnings Results, Beats Expectations By $0.52 EPS

Key Points

• Wolfspeed reported EPS of ($3.26), beating estimates by $0.52, with revenue of $150.2M (down 19% YoY); however gross margin remained negative at -20.6% and adjusted EBITDA was a negative $62M, with Q4 revenue guidance of $140–160M.
• The company boosted liquidity via a private placement that generated about $476M, received CFIUS approval freeing roughly $400M of equity, ended the quarter with about $1.2B in cash and short‑term investments, and used proceeds to cut first‑lien notes by ~$97M and expected annual interest expense by ~$62M.
• Wolfspeed highlighted technology and market progress with the first commercial 10‑kilovolt SiC power MOSFET, a reorganized go‑to‑market across four verticals, and ~30% sequential revenue growth in AI/data‑center applications indicating early diversification beyond automotive.

Wolfspeed (NYSE:WOLF - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported ($3.26) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($3.78) by $0.52, Briefing.com reports. The company had revenue of $150.20 million for the quarter, compared to the consensus estimate of $150.00 million. During the same period in the prior year, the firm posted ($0.72) earnings per share. The business's revenue was down 19.0% on a year-over-year basis.

Here are the key takeaways from Wolfspeed's conference call:

• Wolfspeed completed a private placement generating approximately $476 million gross, used proceeds to reduce first‑lien notes by ~43% (cutting principal by ~$97 million), expects to lower annual interest expense by ~$62 million, received CFIUS approval that released equity (~+$400 million) and ended the quarter with ~$1.2 billion in cash and short‑term investments.
• Revenue was $150 million in Q3 (in line with guidance) with Q4 guidance of $140–160 million, but gross margin remained negative at -20.6% (underutilization cost ~$46 million) and adjusted EBITDA was a negative $62 million.
• Technology leadership accelerated with the first commercially available 10‑kilovolt SiC power MOSFET and a next‑generation TOLT portfolio, while device production has been consolidated to 200mm at Mohawk Valley and Durham now anchors commercial materials and near‑term 300mm development.
• Go‑to‑market was reorganized into four verticals (auto, I&E, aerospace & defense, materials) and AI/data‑center applications showed ~30% sequential growth from Q2 to Q3, indicating early traction and revenue diversification beyond automotive.
• Operationally Wolfspeed completed the 150mm Durham shutdown and largely finished headcount reductions with non‑GAAP OPEX around $61 million, but improving factory utilization remains the key lever to expand margins and reach profitability.

Wolfspeed Stock Performance

NYSE:WOLF traded up $2.16 during trading hours on Thursday, reaching $45.24. The company's stock had a trading volume of 10,836,187 shares, compared to its average volume of 2,649,565. The firm has a market capitalization of $2.04 billion and a price-to-earnings ratio of -6.43. The firm has a 50-day simple moving average of $21.47 and a 200-day simple moving average of $20.53. Wolfspeed has a 1 year low of $8.05 and a 1 year high of $49.00.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Susquehanna dropped their price objective on shares of Wolfspeed from $30.00 to $20.00 and set a "neutral" rating for the company in a report on Thursday, January 22nd. Zacks Research raised shares of Wolfspeed to a "hold" rating in a report on Monday, February 9th. Wall Street Zen downgraded shares of Wolfspeed from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Wolfspeed in a report on Friday, March 27th. Finally, Piper Sandler reiterated an "overweight" rating and issued a $20.00 target price (up from $6.00) on shares of Wolfspeed in a research report on Thursday, February 5th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus price target of $14.33.

Hedge Funds Weigh In On Wolfspeed

A number of hedge funds have recently modified their holdings of WOLF. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in shares of Wolfspeed in the second quarter valued at about $34,000. Canada Pension Plan Investment Board purchased a new position in shares of Wolfspeed in the second quarter valued at about $34,000. Summit Securities Group LLC increased its position in shares of Wolfspeed by 71.0% in the fourth quarter. Summit Securities Group LLC now owns 2,204 shares of the company's stock valued at $38,000 after acquiring an additional 915 shares during the period. Marex Group plc purchased a new position in shares of Wolfspeed in the second quarter valued at about $44,000. Finally, WINTON GROUP Ltd purchased a new position in shares of Wolfspeed in the second quarter valued at about $47,000.

Wolfspeed Company Profile

Wolfspeed, Inc NYSE: WOLF is a leading developer and manufacturer of silicon carbide (SiC) and gallium nitride (GaN) semiconductor materials and devices. The company's product portfolio addresses high-growth markets such as electric vehicles, renewable energy, fast-charging infrastructure, aerospace and defense, and telecommunications. By leveraging proprietary materials and device designs, Wolfspeed delivers solutions that offer improved energy efficiency, higher power density and greater thermal performance compared to conventional silicon-based semiconductors.

Founded as part of Cree, Inc and spun off to form an independent public company in October 2021, Wolfspeed traces its roots to the mid-1980s when it pioneered the commercial use of wide-bandgap semiconductor technology.

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