Wolfspeed shares tumble on weak guidance

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.

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Source: Investing.com