Wolfspeed Shares Drop 19% After Wider-Than-Expected 3Q Loss

Dow Jones05-02

Wolfspeed shares were down 19% to $21.11 after the company reported a third-quarter loss that was wider than expected.

The semiconductor company had a quarterly loss of $148.9 million, or $1.18 a share, compared to a loss of $99.5 million, or 80 cents a share, in the same quarter last year. Analysts polled by FactSet were looking for a loss of $133.6 million, or $1.05 a share.

Revenue for the quarter was $200.7 million, compared with last year's $192.6 million and the $201.2 million analysts were expecting.

Wolfspeed said that while there have been headlines around general demand weakness in electric vehicles, it still has more demand than it can supply for the foreseeable future.

For the fourth quarter, the company is expecting revenue of $185 million to $215 million. Analysts are looking for revenue of $207 million.

The company is expecting a fourth-quarter loss of $1.32 to $1.50 a share, and an adjusted loss of 72 cents to 86 cents a share. Analysts are looking for a fourth-quarter loss of $1.20, and an adjusted loss of $1.36 a share.

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