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Wolfspeed (WOLF) Q2 Loss Narrows, Revenues Increase Y/Y

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Wolfspeed (WOLF - Free Report) 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 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.


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 - Free Report) , Qorvo (QRVO - Free Report) and RingCentral (RNG - Free Report) 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.

In-Depth Zacks Research for the Tickers Above

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Roper Technologies, Inc. (ROP) - free report >>

Wolfspeed (WOLF) - free report >>

Ringcentral, Inc. (RNG) - free report >>

Qorvo, Inc. (QRVO) - free report >>

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