Wolfspeed Set to Report Q3 Earnings: What's in Store for the Stock?

Core Viewpoint - Wolfspeed (WOLF) is expected to report a non-GAAP net loss for the third quarter of fiscal 2025, with revenues anticipated to decline compared to the previous year [1][2][3]. Financial Expectations - WOLF forecasts a non-GAAP net loss between 76 cents and 88 cents per share for Q3 fiscal 2025, with revenues expected to range from $170 million to $200 million [1]. - The Zacks Consensus Estimate for revenues is set at $186.3 million, indicating a 7.17% decline from the same quarter last year [2]. Performance Analysis - WOLF has surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 3.25% [2]. - The company reported a loss of 62 cents per share in the same quarter last year [1]. Market Factors - The fiscal third-quarter performance is anticipated to be impacted by weak Materials Products revenue due to sluggish end-market demand and elevated inventory levels [3]. - Despite challenges, WOLF maintains a strong position in the semiconductor market, particularly in the electric vehicle (EV) and high-voltage power sectors [3]. Growth Drivers - WOLF's EV revenues have shown robust growth, with approximately 92% year-over-year increase in the fiscal second quarter, and this momentum is expected to continue into the third quarter [4]. - The company anticipates increased revenue contributions from its Mohawk Valley facility, targeting between $55 million and $75 million as production ramps up [4].