Wolfspeed Stock Takes A Hit After Hours - Here's Why

Wolfspeed, Inc. WOLF shares are trading lower in Wednesday's after-hours session following the company's second-quarter earnings. Here's an overview of how the company performed during the quarter.

What To Know: Wolfspeed reported quarterly losses of 55 cents per share, which beat the analyst consensus estimate of losses of 66 cents, a 400% decrease over losses of 11 cents per share from last year.

The company reported revenue of $208.40 million, beating analyst expectations of $206.36 million, marking a 3.56% decrease over sales of $216.10 million from last year.

One of the company's notable achievements during the period was that it reached record quarterly design wins, which totaled $2.9 billion in the quarter.

Non-GAAP gross margin was 16.4%, compared to 35.8% in the same period last year.

Wolfspeed stated that it targets revenue from continuing operations between $185 million and $215 million for the third quarter. Non-GAAP net loss from continuing operations is targeted at between $71 million and $87 million, or between 57 cents and 69 cents per diluted share.

Also, the Mohawk Valley Fab contributed $12 million in revenue, a 3x increase from the prior quarter.

"We're proud of our results this quarter, which reflect robust execution of our strategy and fortify our vision for the future of Wolfspeed and silicon carbide," said Wolfspeed CEO, Gregg Lowe.

"We have made considerable progress at our Mohawk Valley facility, tripling revenue sequentially. Our successful scale-up of 200mm wafer production and continued qualification of high-quality EV products on 200mm substrates are critical steps in meeting the continued customer demand. This is demonstrated by a record $2.9 billion of design-wins, predominantly in the EV sector across multiple OEMs."

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WOLF Price Action: Shares of Wolfspeed were down 4.73% at $31.00 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by manseok Kim from Pixabay