Wolfspeed, Inc. (NYSE:WOLF) reported worse-than-expected third-quarter revenue results on Wednesday.
Wolfspeed posted adjusted loss of 62 cents per share, compared to market expectations for a loss of 64 cents per share. The company's quarterly sales came in at $200.700 million, missing estimates of $201.110 million, according to data from Benzinga Pro.
"We are pleased with the significant operational milestones achieved in the quarter for Wolfspeed as we continue to be the world's first fully, vertically integrated 200-millimeter silicon carbide player at scale," said Wolfspeed CEO, Gregg Lowe. "We are making progress on our Mohawk Valley ramp, more than doubling revenue sequentially in the quarter and reaching more than 16% wafer start utilization in April, giving us confidence in our ability to achieve our 20% utilization target in June 2024. Construction continues at the JP, our 200mm materials factory in North Carolina. During the quarter, we started installing furnaces and connected the facility to the power grid, and we recently hosted our topping out ceremony. As we've said before, Mohawk Valley will be the flywheel of growth for Wolfspeed, and the JP will be instrumental in supplying it with high-quality materials. We are encouraged by the operational progress these facilities have made and how it will support our long-term growth trajectory."
Wolfspeed shares fell 3.4% to close at $26.11 on Wednesday.
These analysts made changes to their price targets on Wolfspeed following earnings announcement.
Mizuho cut the price target on Wolfspeed from $30 to $27. Mizuho analyst Vijay Rakesh maintained a Neutral rating.
Susquehanna lowered the price target on Wolfspeed from $25 to $23. Susquehanna analyst Christopher Rolland maintained a Neutral rating.
TD Cowen analyst Matthew Ramsay downgraded Wolfspeed from Buy to Hold and announced a $25 price target.