Why Wolfspeed Stock Is Plunging After Hours

Why Wolfspeed Stock Is Plunging After Hours

Wolfspeed Inc WOLF shares are trading lower in Wednesday's after-hours session after the company reported financial results and issued guidance below analyst estimates.

Wolfspeed reported fiscal first-quarter revenue of $241.3 million, which beat average analyst estimates of $239.61 million, according to Benzinga Pro. The company reported a quarterly net loss of 4 cents per share, which beat average estimates for a loss of 5 cents per share.

"There is tremendous momentum for Wolfspeed across a growing number of mid and high-powered applications, as evidenced by $3.5 billion of design-ins for the quarter, six times what it was in the prior year period, and an opportunity pipeline that now exceeds $40 billion," said Gregg Lowe, CEO of Wolfspeed.

"Our near-term revenue guidance is impacted solely by manufacturing and supply challenges in our current footprint, as our near-term demand continues to grow and the long-term demand continues to strengthen."

Wolfspeed expects fiscal second-quarter revenue to be between $215 million and $235 million versus average analyst estimates of $252.12 million. The company expects a second-quarter net loss of between 8 and 16 cents per share.

See Also: After-Hours Alert: Why ServiceNow Shares Are Soaring

WOLF Price Action: Wolfspeed has a 52-week high of $125.58 and a 52-week low of $58.07.

The stock was down 16.30% at $89.55 at the time of publication.

Photo: Lorenzo Cafaro from Pixabay.

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