It has been about a month since the last earnings report for Wolfspeed (WOLF). Shares have added about 51.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Wolfspeed due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Wolfspeed Q4 Earnings Miss Estimates, Revenues Decline Y/Y
Wolfspeed reported a fourth-quarter fiscal 2025 non-GAAP loss of 77 cents per share, which missed the Zacks Consensus Estimate by 6.94%. The company reported a loss of 89 cents per share in the year-ago quarter.
Revenues of $197 million decreased 1.8% year over year but surpassed the consensus mark by 4.10%. Mohawk Valley Fab contributed $94.1 million in revenues in the reported quarter.
Power Products accounted for 60.2% of revenues, while Materials Products contributed 39.8%. Power Products’ revenues increased 13.4% year over year to $118.6 million. However, Materials Products’ revenues decreased 18.4% year over year to $78.4 million.
Wolfspeed’s Operating Details
For the fiscal fourth quarter, Wolfspeed reported a negative non-GAAP gross margin of 1%, down from 5.4% reported in the year-ago quarter. Underutilization costs of $23.6 million negatively impacted gross margin in the reported quarter.
In the reported quarter, sales, general, and administrative expenses were $36.1 million (18.3% of total revenues), down 41.4% year over year.
Research & development expenses (19.1% of total revenues) decreased 37.3% year over year to $37.6 million.
The company incurred a non-GAAP operating loss of $119.8 million, wider than the operating loss of $112 million in the year-ago quarter.
WOLF’s Balance Sheet & Cash Flow
On June 29, 2025, WOLF had cash, cash equivalents, and short-term investments of $955.4 million compared with $1.32 billion as of March 30, 2025.
Cash used in operating activities was $242.5 million in the reported quarter compared with $142.1 million in the previous quarter.
The free cash outflow was $454 million compared with the previous quarter’s $167.7 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Wolfspeed has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Wolfspeed has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Wolfspeed (WOLF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
