WOLF - Why Wolfspeed Stock Is Crashing Today
2023-08-17 10:51:32 ET
Wolfspeed (NYSE: WOLF) stock is plummeting Thursday after the company published results for its fiscal fourth quarter, which ended June 25. The semiconductor specialist's share price was down 18.7% as of 10:30 a.m. ET, according to data from S&P Global Market Intelligence .
Wolfspeed published its Q4 results after the market closed yesterday, recording mixed results in the period. The company posted a non-GAAP (adjusted) per-share loss of $0.42 on revenue of $235.8 million, while the average analyst estimate had called for a loss per share of $0.20 on sales of $222.7 million. In addition to the wider-than-expected loss, Wolfspeed also announced forward guidance that spooked Wall Street.
Wolfspeed's revenue grew 3.2% year over year in its fourth fiscal quarter and beat the market's expectations, but the business's loss came in significantly wider than expected in the period. The semiconductor specialist's adjusted gross margin fell from 36.5% in Q4 last year to 29%, and its loss per diluted share expanded significantly from the $0.21 loss it posted in the previous year's quarter. The big margin decline is at least partially due to accounting changes.
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Why Wolfspeed Stock Is Crashing Today