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Wolfspeed's (WOLF) Loss Widens in Q4, Revenues Increase
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Wolfspeed (WOLF - Free Report) reported a fourth-quarter fiscal 2023 non-GAAP loss of 42 cents per share, broader than the Zacks Consensus Estimate of a loss of 20 cents per share and the year-ago quarter’s loss of 21 cents per share.
Revenues of $235.8 million increased 3.2% year over year and beat the consensus mark by 5.6%.
Quarter Details
In the fiscal fourth quarter, Wolfspeed reported a non-GAAP gross margin of 29%, which contracted 750 basis points on a year-over-year basis.
In the reported quarter, sales general and administrative expenses were $64.1 million (27.2% of total revenues), up 16.5% year over year. Moreover, research & development expenses (24.2% of total revenues) increased 18.5% year over year to $57.1 million.
Wolfspeed incurred a non-GAAP operating loss of $77.1 million, broader than the operating loss of $37.6 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 25, 2023, WOLF had cash, cash equivalents and short-term investments of $2.95 billion compared with $2.25 billion as of Mar 26, 2023.
In the fiscal fourth quarter, Wolfspeed reported cash outflow from operations of $51.9 million compared with $11 million in the fiscal third quarter.
Free cash outflow was $454.8 million in the reported quarter.
Guidance
For first-quarter fiscal 2024, Wolfspeed expects revenues of $220-$240 million. The Zacks Consensus Estimate for the quarter’s revenues is pegged at $230.9 million.
Non-GAAP loss is expected to be 60-75 cents per share. The Zacks Consensus Estimate for the quarter’s loss is pegged at 33 cents per share.
Zacks Rank & Stocks to Consider
Wolfspeed currently has a Zacks Rank #4 (Sell).
WOLF’s shares have fallen 23% compared with the Zacks Computer and Technology sector’s rise of 33.8% in the year to date period.
Here are some better-ranked stocks worth considering in the broader sector.
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Wolfspeed's (WOLF) Loss Widens in Q4, Revenues Increase
Wolfspeed (WOLF - Free Report) reported a fourth-quarter fiscal 2023 non-GAAP loss of 42 cents per share, broader than the Zacks Consensus Estimate of a loss of 20 cents per share and the year-ago quarter’s loss of 21 cents per share.
Revenues of $235.8 million increased 3.2% year over year and beat the consensus mark by 5.6%.
Quarter Details
In the fiscal fourth quarter, Wolfspeed reported a non-GAAP gross margin of 29%, which contracted 750 basis points on a year-over-year basis.
In the reported quarter, sales general and administrative expenses were $64.1 million (27.2% of total revenues), up 16.5% year over year. Moreover, research & development expenses (24.2% of total revenues) increased 18.5% year over year to $57.1 million.
Wolfspeed Price, Consensus and EPS Surprise
Wolfspeed price-consensus-eps-surprise-chart | Wolfspeed Quote
Wolfspeed incurred a non-GAAP operating loss of $77.1 million, broader than the operating loss of $37.6 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jun 25, 2023, WOLF had cash, cash equivalents and short-term investments of $2.95 billion compared with $2.25 billion as of Mar 26, 2023.
In the fiscal fourth quarter, Wolfspeed reported cash outflow from operations of $51.9 million compared with $11 million in the fiscal third quarter.
Free cash outflow was $454.8 million in the reported quarter.
Guidance
For first-quarter fiscal 2024, Wolfspeed expects revenues of $220-$240 million. The Zacks Consensus Estimate for the quarter’s revenues is pegged at $230.9 million.
Non-GAAP loss is expected to be 60-75 cents per share. The Zacks Consensus Estimate for the quarter’s loss is pegged at 33 cents per share.
Zacks Rank & Stocks to Consider
Wolfspeed currently has a Zacks Rank #4 (Sell).
WOLF’s shares have fallen 23% compared with the Zacks Computer and Technology sector’s rise of 33.8% in the year to date period.
Here are some better-ranked stocks worth considering in the broader sector.
NVIDIA (NVDA - Free Report) , Workday (WDAY - Free Report) and Hewlett Packard (HPE - Free Report) are some better-ranked stocks that investors can consider in the broader sector. NVIDIA and Workday sport a Zacks Rank #1 (Strong Buy), while Hewlett Packard carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NVIDIA shares have gained 197.5% year to date. NVDA is set to report second-quarter 2023 results on Aug 23.
Workday’s shares have gained 37.7% year to date. WDAY is set to report its second-quarter fiscal 2024 results on Aug 24.
Hewlett Packard shares have surged 6.7% year to date. HPE is set to report third-quarter fiscal 2023 results on Aug 29.