Wolfspeed (NYSE:WOLF) Announces Earnings Results, Misses Estimates By $5.37 EPS

Wolfspeed (NYSE:WOLF) announced its earnings results on Wednesday. The company reported ($6.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.74) by ($5.37), Briefing.com reports. The business had revenue of $168.50 million during the quarter, compared to analyst estimates of $170.00 million. During the same quarter in the previous year, the business earned ($0.95) earnings per share. The company’s quarterly revenue was down 6.6% on a year-over-year basis.

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

• Wolfspeed reported strong momentum in AI/data-center power, with 50% quarter-over-quarter growth in AI data center revenue and a doubling of that revenue over the last three quarters.
• The company strengthened its balance sheet post-restructuring with ~$1.3 billion cash, receipt of ~$700 million in tax refunds, net debt around $600 million, and initial first‑lien debt paydowns that reduced annual interest costs.
• Q2 results showed continued losses—total revenue of $168 million but a non‑GAAP gross margin of -34% (impacted by Fresh Start adjustments, amortization, inventory reserves and ~$48 million of underutilization), adjusted EBITDA of -$82 million, and a Q3 revenue guide of $140–160 million with gross margin expected to remain negative.
• Operational and technology progress includes the ahead‑of‑schedule shutdown of 150mm production, full transition to higher‑efficiency 200mm manufacturing, and production of a single‑crystal 300mm SiC wafer as early validation for future opportunities.
• Management is shifting to a vertical go‑to‑market (auto, industrial & energy, aerospace & defense, materials) and winning strategic engagements—highlighted by a partnership with Toyota—to diversify revenue beyond EVs.

Wolfspeed Stock Performance

WOLF stock traded down $0.51 during midday trading on Friday, reaching $15.02. The stock had a trading volume of 437,289 shares, compared to its average volume of 1,570,278. The firm has a fifty day simple moving average of $18.92 and a two-hundred day simple moving average of $14.70. Wolfspeed has a 52-week low of $8.05 and a 52-week high of $36.60. The stock has a market cap of $388.90 million and a PE ratio of -23.80.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on WOLF. Susquehanna cut their target price on Wolfspeed from $30.00 to $20.00 and set a “neutral” rating on the stock in a research note on Thursday, January 22nd. Piper Sandler reiterated an “overweight” rating and set a $20.00 price objective (up previously from $6.00) on shares of Wolfspeed in a research note on Thursday. Weiss Ratings reissued a “sell (d-)” rating on shares of Wolfspeed in a research report on Monday, December 29th. Finally, Wall Street Zen lowered shares of Wolfspeed from a “hold” rating to a “sell” rating in a report on Friday, January 23rd. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $12.75.

Institutional Trading of Wolfspeed

Large investors have recently made changes to their positions in the business. Qube Research & Technologies Ltd purchased a new position in Wolfspeed during the third quarter valued at approximately $4,322,000. Schonfeld Strategic Advisors LLC acquired a new stake in shares of Wolfspeed during the 3rd quarter worth approximately $735,000. TENOR CAPITAL MANAGEMENT Co. L.P. purchased a new position in shares of Wolfspeed during the 3rd quarter valued at approximately $1,845,000. Mariner Investment Group LLC acquired a new position in shares of Wolfspeed in the 3rd quarter valued at $715,000. Finally, Quinn Opportunity Partners LLC boosted its holdings in Wolfspeed by 248.6% during the third quarter. Quinn Opportunity Partners LLC now owns 69,714 shares of the company’s stock worth $1,994,000 after buying an additional 49,714 shares in the last quarter.

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.