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Wolfspeed Set to Report Q3 Earnings: What's in Store for the Stock?

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Wolfspeed (WOLF - Free Report) is set to report its third-quarter fiscal 2025 results on May 8.

For third-quarter fiscal 2025, WOLF expects non-GAAP net loss between 76 cents and 88 cents per share. Revenues are expected to be between $170 million and $200 million.

The Zacks Consensus Estimate for third-quarter fiscal 2025 loss is pegged at 82 cents per share, unchanged over the past 30 days. Wolfspeed reported a loss of 62 cents per share in the year-ago quarter.

The consensus estimate for revenues is pegged at $186.3 million, suggesting a decline of 7.17% from the year-ago quarter’s reported number.

WOLF’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the same in one quarter, the average surprise being 3.25%.(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
 

Wolfspeed Price and EPS Surprise

Wolfspeed Price and EPS Surprise

Wolfspeed price-eps-surprise | Wolfspeed Quote

 

Let’s see how things have shaped up for Wolfspeed prior to this announcement.

Factors to Note for WOLF’s Q3 Results

Wolfspeed’s fiscal third-quarter performance is expected to suffer from weak Materials Products revenue due to sluggish end-market demand and higher inventory levels.

However, Wolfspeed’s strong position in the semiconductor market, particularly within the electric vehicle (EV), and high-voltage power sectors is noteworthy. The company is expected to benefit from the increasing contribution from its Mohawk Valley plant.

Wolfspeed’s EV revenues have been robust, with approximately 92% year-over-year growth in the fiscal second quarter. The momentum is expected to have continued in the fiscal third quarter driven by an increase in the total number of car models using low-speed silicon carbide devices.

Wolfspeed anticipates increased revenue contributions from its Mohawk Valley facility, targeting around $55 million to $75 million, as the company increases production.

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. But that’s not the exact case here.

Wolfspeed currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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:

Affirm (AFRM - Free Report) currently has an Earnings ESP of +63.27% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Affirm shares have gained 49.2% in the trailing 12 months. AFRM is set to report its third-quarter 2025 results on May 8.

Compass (COMP - Free Report) presently has an Earnings ESP of +21.05% and a Zacks Rank #2.

Compass shares have surged 132.6% in the trailing 12 months. Compass is set to report its first-quarter 2025 results on May 8.

Stone Co (STNE - Free Report) has an Earnings ESP of +6.25% and a Zacks Rank #1.

Stone Co shares have plunged 21% in the trailing 12 months. STNE is set to report its first-quarter 2025 results on May 8.


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