Wolfspeed Exceeds Revenue Estimates, Reduces Net Loss
Wolfspeed (Wolf) outperformed Wall Street expectations for Q2 revenue and reported a narrower-than-anticipated net loss. Operational adjustments aimed at enhancing profitability contributed to these results.
In Q1 2025, Wolfspeed closed facilities and transitioned its device business to a 200-millimeter silicon carbide fab, improving efficiency and capacity.
Capitalizing on the rising demand for silicon carbide chips, which are crucial for applications such as EV powertrains and renewable energy systems, the company expects continued growth.
Shares of Wolfspeed rose 1.2% in extended trading. Revenue for Q2 reached $180.5 million, surpassing estimates of $179.9 million. Wolfspeed's net loss per share was 95 cents, better than the projected $1.02 per share.
The Mohawk Valley Fab facility generated $52 million in revenue. Despite weak automotive demand, Wolfspeed is optimistic about its future under the leadership of Thomas Werner as executive chairman, who was appointed after the departure of former CEO Gregg Lowe.
Wolfspeed projects Q3 revenue of $170-$200 million, slightly below analyst consensus of $193.6 million. Adjusted loss per share for the quarter is expected to range from 88 to 76 cents, compared to estimates of a loss of 86 cents per share.
The company anticipates $72 million in restructuring costs for Q3 2025.