The stock price of Wolfspeed Inc (NYSE: WOLF) jumped 22% in Thursday premarket, extending its gains by a further 8% as the market opened. After the company posted its Q3 results yesterday, the company reported a loss, yet the price surged as the numbers beat analyst expectations.
The semiconductor producer reported a loss of $70.1 million in its first fiscal quarter after the company’s four-year transition from Cree Inc – debuting on the NYSE at the start of October. With that, adjusted losses including non-recurring costs and stock option expense were $0.21 per share. Whilst not overly impressive, investors were pleased as the losses beat the expectations of Wall Street – which averaged $0.24.
Again, Wolfspeed beat analyst revenue targets; recording revenue of $156.6 million as opposed to predictions of $148.7 million, with the company expecting revenue of between $165 to $175 million in the following quarter.
Wolfspeed CEO, Gregg Lowe remains positive regarding future growth:
“We are pleased to report a solid fiscal first quarter, our fifth consecutive quarter of revenue growth bolstered by the rapidly expanding marketplace for Silicon Carbide products. We are driving the transition to Silicon Carbide-based solutions during a period of momentous change, which is demonstrated by our expanding list of customers and formal name change”
Now purveyors of silicon carbide semiconductors, Wolfspeed is still finding its feet following its directional shift. The company has the potential for cohesive growth as the wider sector shifts to incorporate new technology. WOLF stock is currently trading around the $116.50 mark with daily gains of 29%.
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