Wolfspeed (WOLF) Reports Q3 Loss, Lags Revenue Estimates

Company Performance - Wolfspeed reported a quarterly loss of $0.72 per share, better than the Zacks Consensus Estimate of a loss of $0.82, but worse than a loss of $0.62 per share a year ago, indicating an earnings surprise of 12.20% [1] - The company posted revenues of $185.4 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.48%, and down from $200.7 million year-over-year [2] - Over the last four quarters, Wolfspeed has surpassed consensus EPS estimates three times, but has topped consensus revenue estimates only once [2] Stock Outlook - Wolfspeed shares have declined approximately 38.3% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.80 on revenues of $194.77 million, and for the current fiscal year, it is -$3.30 on revenues of $756.27 million [7] - The estimate revisions trend for Wolfspeed is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Semiconductor - Discretes industry, to which Wolfspeed belongs, is currently ranked in the bottom 15% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Wolfspeed's stock performance [5]