Wolfspeed Inc (NYSE:WOLF) shares are bouncing on Wednesday after getting hit hard yesterday when the company posted a weak fiscal third quarter and issued soft guidance for the fourth quarter.
- Wolfspeed stock is challenging resistance. What’s driving WOLF to record levels?
Today’s move looks like a classic rebound: the stock sold off on the headline numbers, and now traders are stepping back in as the dust settles.
The Setup: A Bad Quarter Yesterday, A Relief Move Today
The company reported a third-quarter loss of $3.26 per share, much deeper than the $2.02 loss analysts expected and far worse than the 72 cent loss in the same quarter last year. Revenue came in at $150.2 million, well below the $194.8 million consensus and down nearly 19% year‑over‑year.
Wolfspeed also guided fourth-quarter revenue to $140 through $160 million, with gross margins expected to stay negative.
Balance Sheet Moves May Be Stabilizing Sentiment
The company refinanced $476 million of first‑lien debt, which reduced its total debt by $97 million and lowered annual interest expense by an estimated $62 million.
Management also noted that Wolfspeed’s equity position improved by more than $400 million, largely due to the strategic refinancing and the reclassification of Renesas ownership following CFIUS clearance. Liquidity remains solid as well, with $1.2 billion in cash, cash equivalents and short‑term investments at the end of the quarter.
Management also pointed to ongoing product and technology progress, including the launch of its next‑generation TOLT portfolio, the first commercially available 10 kV silicon carbide MOSFET, and continued advancement of its 300mm substrate platform. The CFO, Gregor van Issum, emphasized that these moves significantly strengthen the balance sheet and give the company more flexibility to fund its highest‑priority initiatives.
WOLF Shares Are On The Rise
WOLF Price Action: Wolfspeed shares were up 16.11% at $42.53 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro.
Image: T. Schneider/Shutterstock
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