Wolfspeed (NYSE:WOLF) shares dropped about 13% in pre-market Thursday after the company reported results for its fiscal fourth quarter.
EPS of ($0.42) came in worse than the consensus estimate of ($0.20). Meanwhile, revenue of $235.8 million came in better than the consensus estimate of $224.53M.
"We are very pleased with our progress in fiscal 2023 as we secured $5 billion of funding to support our continued capacity expansion plans, initiated construction on our 200mm materials factory in North Carolina, and generated initial revenue from the Mohawk Valley 200mm device fab," said CEO Gregg Lowe.
For Q1/24, the company expects EPS in the range of ($0.60)-($0.75), worse than the consensus of ($0.30). Revenue is seen at $220-$240M, compared to the consensus estimate of $235.5M.
Wolfspeed made certain changes in margin reporting, which is "optically driving a softer near-to-medium term outlook" according to Goldman Sachs analysts.
"We note that F1Q24 non GAAP gross margin guide implies a sequential uptick at the mid point under prior reporting measures but is down significantly on the new reporting convention. Mohawk Valley ramp progress was largely as expected, with inflection still appearing to be a few quarters away. We remain Buy rated," the analysts said.
Additional reporting by Senad Karaahmetovic