WOLF Earnings Prediction
The chart below shows how WOLF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WOLF sees a +1.59% change in stock price 10 days leading up to the earnings, and a -7.67% change 10 days following the report. On the earnings day itself, the stock moves by -1.15%. This data can give you a slight idea of what to expect for the next quarter's release.
WOLF Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
194.70M
-1.37%
-2.99%
Gross Margin
-18.75%
-251.70%
-1804.55%
Operating Margin
-76.84%
81.01%
29.16%
Net Margin
-144.94%
131.50%
66.33%
EPS
-2.23
-29.43%
60.43%
No Data Available
WOLF Earnings Analysis
Wolfspeed, Inc. Corporation (WOLF.N) Earnings Conference Call
Positive
Design Wins and Ins: Wolfspeed generated $1.3 billion in design wins, marking the third highest on record, and $1.5 billion in design-ins, approximately 70% of which were for EV platforms.
EV Revenue Growth Forecast: EV revenue grew 2.5x year-over-year, and the company expects continued growth throughout calendar 2025 as the number of car models using low-speed silicon carbide devices increases by 4x from 2023 to 2024, and is expected to grow by another approximately 75% in 2025.
Funding Under CHIPS Act: The company secured $750 million in direct funding under the CHIPS and Science Act, which is a key component to solidifying its capital structure.
Strong Cash Position: Wolfspeed ended the quarter with a strong cash position, with total cash and cash equivalents of approximately $1.7 billion, not including the additional $250 million of term loan financing received in October.
Cost Management Success: Operating expenses were $120 million in the quarter, well below guidance, and down $10 million quarter-over-quarter, as the company continues to manage costs in conjunction with its overall simplification initiatives.
Negative
Quarterly Revenue Performance: Revenue for the quarter was $195 million, slightly below the midpoint of our guidance and down 3% sequentially.
Power Revenue Decline: Power revenue was $97 million, down quarter over quarter, driven largely by lower demand in the industrial and energy sectors.
Cost Management Success: Operating expenses were $120 million in the quarter, well below our guidance, and down $10 million quarter over quarter, as we continue to manage costs in conjunction with our overall simplification initiatives.
Gross Margin Performance: Non-GAAP gross margin for the first quarter was 3.4%, down quarter over quarter, but above the midpoint of our August guidance.
Negative Free Cash Flow: Free cash flow during the quarter was negative $528 million, comprised of negative $132 million of operating cash flow and $396 million of capital expenditures.
WOLF FAQs
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WOLF Earning Call Sentiment
Wolfspeed, Inc. (WOLF) Q1 2025 Earnings Call Transcript
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WOLF.N
-0.81%Positive
The earnings call summary presents a mixed picture: while there are positive signs such as strong design wins and growth in EV revenue, there are also concerns like reduced revenue guidance, workforce reduction, and restructuring costs. The Q&A section did not provide clear answers, particularly regarding CHIPS Act milestones and Renesas' commitments, adding uncertainty. The market cap of $2.9 billion suggests moderate sensitivity to these factors. Overall, the lack of a clear shareholder return plan and uncertain guidance balance out the positives, leading to a neutral stock price prediction over the next two weeks.