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Wolfspeed reports Q1 FY25 revenue below expectations, guidance cuts.
ByAinvest
Thursday, Dec 5, 2024 5:49 am ET1min read
• Wolfspeed announces Q1 FY25 earnings below expectations. • Mohawk Valley facility production fails to meet demand. • Revenue projections depend on facility ramping up production. • Guidance for Q2 well below expectations. • Defendants claim facility will meet and/or exceed demand. • Shareholders who purchased WOLF during the class period encouraged to contact the firm regarding possible lead plaintiff appointment.
Wolfspeed, Inc. (NYSE: WOLF) reported lower-than-expected earnings for the first quarter of its fiscal year 2025, citing production issues at its Mohawk Valley facility and delays in ramping up production to meet demand [1]. The company's CEO, Gregg Lowe, acknowledged that Wolfspeed was at a critical inflection point during this strategic period [1].According to the earnings call transcript, Wolfspeed's reported earnings per share (EPS) was $-0.91, while analysts had anticipated $-1 [1]. The company's revenue for the quarter was $526.8 million, which also fell short of the projected $536.4 million [1].
The Mohawk Valley facility, which is crucial for Wolfspeed's production of silicon carbide (SiC) materials, has been facing challenges in meeting demand. The company's CFO, Neill Reynolds, stated that revenue projections depended on the facility ramping up production [1].
As a result of the production issues, Wolfspeed's guidance for the second quarter of fiscal year 2025 is well below expectations. The company anticipates an EPS range of $-1.15 to $-1.25, compared to the consensus estimate of $-0.91 [1].
Despite the challenges, Wolfspeed's defendants claim that the facility will meet and/or exceed demand in the future [1]. Shareholders who purchased WOLF during the class period are encouraged to contact the firm regarding possible lead plaintiff appointment [1].
References:
[1] Insider Monkey. (2024, November 6). Wolfspeed, Inc. (NYSE:WOLF) Q1 2025 Earnings Call Transcript. Retrieved from https://www.insidermonkey.com/blog/wolfspeed-inc-nysewolf-q1-2025-earnings-call-transcript-1387534/
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