Girolamo Maurizio
Shares of chipmaker Wolfspeed (NYSE:WOLF) on Wednesday fell by more than 4% in extended trading, after the chipmaker provided guidance on current quarter revenue that came in lower than estimates.
WOLF stock was last down 4.1% at $31.20 after hours.
Wolfspeed (WOLF) reported a loss per share for the second quarter of 2024 of $1 on revenue of $208.4 million. Analysts had expected a per-share loss of 63 cents on revenue of $206.41 million.
Wolfspeed (WOLF), based in Durham, N.C., makes silicon carbide (SiC) chips instead of more traditional silicon-based vessels. These SiC chips can operate at much higher voltages and temperatures and are used in electric vehicles (EVs).
For the third quarter, WOLF expects revenue from continuing operations in the range of $185 million to $215 million. The consensus estimate is $223.84 million. The guidance indicated slowing demand and sales growth for electric vehicles.
However, Wolfspeed’s (WOLF) FQ2 saw the company rake in a record $2.9 billion in project wins, predominantly in the electric vehicle sector across multiple OEMs.
Based on the record design wins, WOLF boss Gregg Lowe expressed confidence in the electric vehicle industry. “This consolidates our confidence in the electrification trend, which increasingly depends on the widespread adoption of silicon carbide technology,” the CEO said in a statement.
Additionally, Wolfspeed (WOLF) said its Mohawk Valley plant, which began generating production at the end of fiscal 2023, contributed $12 million in revenue in the quarter, with sales tripling sequentially.
The company noted that it will continue to incur significant factory start-up costs related to facilities it is building or expanding.
“For the third quarter of fiscal 2024, operating expenses are expected to include approximately $13 million in factory start-up costs, primarily related to materials expansion efforts,” Wolfspeed (WOLF) said.
“Cost of revenue, net, is expected to include approximately $36 million of underutilization costs, primarily related to Mohawk Valley Fab,” the company added.