WOLF - Wolfspeed stock slides as quarantine measures weigh on Q3 top line performance

Wolfspeed (NYSE:WOLF) shares dropped ~8% pre-market following the firm's FQ3 earnings announcement. The wide bandgap semiconductor developer generated a better-than-expected adj. earnings of -$0.12 per diluted share, but revenue of $188M (+36.9% Y/Y) failed to meet Wall Street estimates.  Adj. net loss of $14.3M, or $0.12 per diluted share, was at the top end of the company's guidance range, but revenue was "slightly" below the midpoint of its guidance. In the earnings call, CFO Neill Reynolds noted that the top line performance was impacted by COVID-19 quarantine protocols in China, which resulted in partial shutdowns at some of the company's packaging subcontractors and delays in some of its shipping channels. Wolfspeed (WOLF) also incurred start-up costs of ~$21M during the quarter primarily related to opening of its new Mohawk Valley 200mm Silicon Carbide semiconductor wafer fab. Overall, start-up costs are estimated to be at approximately the $75M level by the end of

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Wolfspeed stock slides as quarantine measures weigh on Q3 top line performance