After releasing some disappointing guidance, shares of semiconductor company Wolfspeed (NYSE:WOLF) took a 13% nosedive in after-hours trading. The firm is expecting its fiscal first-quarter sales to hover between $220 million and $240 million, below the consensus of $235.5 million at the midpoint. Adding to the pain, management is also predicting earnings of -$0.60 to -$0.75 per share, which was also below expectations of -$0.20.
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But the hits didn’t stop there. The firm’s fiscal fourth-quarter results were a mixed bag. Wolfspeed reported adjusted earnings of -$0.42 cents per share on $235.8M in revenue. For reference, analysts were looking for -$0.20 per share on revenue of $222.69M.
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WOLF stock based on two Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $58.86 per share implies 10.7% upside potential.
