Wolfspeed WOLF is scheduled to report first-quarter fiscal 2025 results on Nov. 6.
For first-quarter fiscal 2025, non-GAAP loss is expected to be between 90 cents and $1.09 per share.
The consensus mark for first-quarter fiscal 2025 loss is pegged at $1.01 per share. Wolfspeed reported a loss of 53 cents per share in the year-ago quarter.
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Wolfspeed expects first-quarter fiscal 2025 revenues in the range of $185-$215 million.
Wolfspeed Price and EPS Surprise
Wolfspeed price-eps-surprise | Wolfspeed Quote
The Zacks Consensus Estimate for revenues is pegged at $200.11 million, suggesting an increase of 1.37% from the year-ago quarter’s reported number.
The company beat the Zacks Consensus Estimate for earnings in all the trailing three quarters while missing the same in one, the average surprise being 7.98%.
Let’s see how things have shaped up for Wolfspeed prior to this announcement.
Factors to Note
Wolfspeed’s fiscal first-quarter performance is expected to have benefited from its position in the semiconductor market, particularly within the electric vehicle (EV) and high-voltage power sectors.
Wolfspeed’s EV revenues have been robust, with more than 100% year-over-year growth in the fiscal fourth quarter and projected growth of approximately 300% year over year for the first quarter of fiscal 2025. This is driven by ongoing design-ins and the ramping of EV production across multiple customers and geographies.
The accelerated shift of device production from the 150-millimeter fab to the 200-millimeter fab is expected to have enhanced profitability and operational efficiency in the to-be-reported quarter. By the March quarter, nearly all EV powertrain production is expected to move to Mohawk Valley.
Wolfspeed anticipates increased revenue contributions from its Mohawk Valley facility, targeting around $50 million to $60 million. This marks a substantial increase in production volume and revenues from the previous quarters as the facility ramps up operations.
The company has a strong backlog of design wins, supporting over 125 different car models across more than 30 original equipment manufacturers. This extensive pipeline is likely to have been a tailwind for WOLF in the to-be-reported quarter.
However, increasing competitive pressure, persistent supply chain constraints and weakness in the industrial and energy domain across Asia, particularly China, are expected to hurt WOLF’s topline in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.
Wolfspeed currently has an Earnings ESP of +2.61% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Shopify SHOP has an Earnings ESP of +4.13% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify shares have gained 1.4% year to date. SHOP is set to report its third-quarter 2024 results on Nov. 12.
Arista Network ANET has an Earnings ESP of +0.72% and a Zacks Rank of 2 at present.
Arista Network shares have gained 67.4% year to date. ANET is set to report its third-quarter 2024 results on Nov. 7.
Bumble BMBL has an Earnings ESP of +29.11% and a Zacks Rank of 3 at present.
Bumble shares have plunged 50.4% year to date. BMBL is set to report its third-quarter 2024 results on Nov. 6.
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