Yahoo Finance Wolfspeed (WOLF) Q2 Loss Narrows, Revenues Increase Y/Y
Wolfspeed WOLF reported second-quarter fiscal 2023 non-GAAP loss of 11 cents per share, narrower than the Zacks Consensus Estimate of a loss of 14 cents per share and the year-ago quarter’s loss of 16 cents per share.
Revenues of $216.1 million were up 24.8% year over year but lagged the consensus mark by 4.22%.
In the fiscal second quarter, Wolfspeed reported a non-GAAP gross margin of 33.6%, which contracted 170 basis points on a year-over-year basis. Gross margin was adversely impacted by supply chain constraints.
In the reported quarter, sales, general and administrative expenses were $55.7 million (25.8% of total revenues), up 16% year over year. Moreover, research & development expenses (26.4% of total revenues) increased 13.5% year over year to $57 million.
Wolfspeed Price, Consensus and EPS Surprise
Wolfspeed price-consensus-eps-surprise-chart | Wolfspeed Quote
Wolfspeed incurred a non-GAAP operating loss of $24.7 million, slightly narrower than the operating loss of $25.4 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 25, 2022, WOLF had cash, cash equivalents and short-term investments of $2.48 billion.
In the fiscal second quarter, Wolfspeed reported cash outflow from operations of $67 million compared with $32.5 million in the fiscal first quarter.
Free cash outflow was $171.1 million in the reported quarter.
Guidance
For the third quarter of fiscal 2023, Wolfspeed expects revenues in the range of $210-$230 million.
Non-GAAP loss is expected to be 12-16 cents per share.
Zacks Rank & Other Stocks to Consider
Wolfspeed currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
WOLF’s shares have fallen 14.4% compared with the Zacks Computer and Technology sector’s decline of 17.6% in the past year.
Roper ROP, Qorvo QRVO and RingCentral RNG are some other top-ranked stocks that investors can consider in the broader sector.
Roper shares have lost 3.8% in the past year. ROP is set to report its fourth-quarter 2022 results on Jan 27.
Qorvo shares have declined 17.4% in the past year. QRVO is set to report its third-quarter fiscal 2023 results on Feb 1.
RingCentral shares have lost 75.9% in the past year. RNG is set to report its fourth-quarter 2022 results on Feb 15.
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