Wolfspeed Shares Rise High After Q4 Results Top Street Expectations, Upbeat Q1 Outlook

Wolfspeed Shares Rise High After Q4 Results Top Street Expectations, Upbeat Q1 Outlook

Wolfspeed Inc WOLF reported fourth-quarter revenue growth of $56.7% year-over-year to $228.5 million, beating the consensus of $207.81 million.

Adjusted EPS was $0.02, beating the consensus of $(0.10).

The gross margin expanded to 35% from 30% in 4Q21. The adjusted gross margin was 36.5%, compared to 32.2%.   

The operating loss for the quarter reduced to $58.9 million from $132.7 million a year ago.

Net cash used in operating activities from continuing operations for FY22 totaled $154.2 million, compared to $112.5 million in FY21.

"Looking forward, we remain very encouraged about the industry's prospects for future growth and the activity we are seeing across our end-markets. We had a phenomenal record of $2.6 billion of design-ins in the fourth quarter. This achievement, coupled with the previous two quarters of $1.6 billion each, provides further evidence of the upward pressure we are seeing on our 2026 revenue outlook, which we now believe is between 30 to 40 percent higher than the $2.1 billion we forecasted at the end of last year," stated Wolfspeed Chief Executive Officer, Gregg Lowe.

1Q23 Outlook: Wolfspeed sees revenue in a range of $232.5 million to $247.5 million.

It expects a GAAP net loss of $14 million to $21 million, or $0.11 to $0.17 per diluted share, and Non-GAAP EPS of $0.02 to $0.08.

Price Action: WOLF shares are trading higher by 17.40% at $100.47 during the post-market session on Wednesday.

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