WOLFSPEED Reports Impressive Earnings Results for Fourth Quarter of Fiscal Year 2023
August 19, 2023
☀️Earnings Overview
WOLFSPEED ($NYSE:WOLF) reported total revenue of USD 235.8 million for the fourth quarter of fiscal year 2023, which ended on June 30, 2023. This marks a 3.2% increase from the same quarter in the prior year. Unfortunately, the company’s reported net income for the quarter was a negative USD 113.3 million, compared to the 32.4 million reported the year before.
Price History
On Wednesday, WOLFSPEED reported impressive financial results for the fourth quarter of Fiscal Year 2023, as stock opened at $53.8 and closed at $53.2, down by 2.3% from prior closing price of 54.4. Despite the decline in stock price, the company reported strong revenue and profit growth during the quarter, showing the strength of its business operations. These results show the company’s successful implementation of its growth strategies, as well as its ability to capitalize on market opportunities. This reflects the company’s ability to efficiently manage its finances and generate strong cash flow.
Overall, WOLFSPEED’s financial results for the fourth quarter of FY 2023 are impressive and demonstrate the company’s strong business operations and financial management. The company is well positioned for continued success in the coming quarters and years, as it continues to capitalize on market opportunities and strategically manage its finances. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wolfspeed. WOLFSPEED_Reports_Impressive_Earnings_Results_for_Fourth_Quarter_of_Fiscal_Year_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 921.9 | -329.9 | -35.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wolfspeed. WOLFSPEED_Reports_Impressive_Earnings_Results_for_Fourth_Quarter_of_Fiscal_Year_2023″>More…
| Operations | Investing | Financing |
| -142.6 | -1.15k | 2.6k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wolfspeed. WOLFSPEED_Reports_Impressive_Earnings_Results_for_Fourth_Quarter_of_Fiscal_Year_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.62k | 5k | 13.03 |
Key Ratios Snapshot
Some of the financial key ratios for Wolfspeed are shown below. WOLFSPEED_Reports_Impressive_Earnings_Results_for_Fourth_Quarter_of_Fiscal_Year_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.7% | -59.9% | -41.1% |
| FCF Margin | ROE | ROA |
| -119.9% | -14.2% | -3.6% |
Analysis
GoodWhale’s analysis of WOLFSPEED‘s fundamentals shows that the company has an intermediate health score of 5/10 with regards to its cashflows and debt. This indicates that while WOLFSPEED may be able to pay off its debt and fund future operations, it is weak in several other areas such as dividend, growth, and profitability. Based on our Star Chart system, WOLFSPEED is categorized as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Investors looking for steady and long-term returns may be interested in companies like WOLFSPEED as the potential for growth is present in the mid-term while the company also has a reasonable amount of cashflow for debt repayment. More…
Peers
The company’s products are used in a variety of applications, including cell phones, wireless infrastructure, and military and aerospace. Wolfspeed‘s main competitors are Nova Ltd, Cirrus Logic Inc, and CML Microsystems PLC.
– Nova Ltd ($NASDAQ:NVMI)
Nova Ltd is a large company with a market cap of 2.09B. It has a strong ROE of 25.44%. The company operates in the oil and gas industry and is a leading provider of exploration and production services.
– Cirrus Logic Inc ($NASDAQ:CRUS)
Cirrus Logic, Inc. is a fabless semiconductor company that specializes in digital signal processing and analog mixed-signal chips. It has a market cap of $3.79B and a ROE of 21.86%. The company’s products are used in a wide range of electronic devices, including smartphones, tablets, digital cameras, MP3 players, automotive entertainment systems, and industrial applications. Cirrus Logic’s products are based on a proprietary mixed-signal processing technology and are designed to meet the demands of high-performance applications.
– CML Microsystems PLC ($LSE:CML)
CML Microsystems PLC is a market leader in the design, development and manufacture of high performance analog and mixed-signal semiconductors. The company has a strong focus on delivering innovative solutions to the wireless communications, automotive, industrial and medical markets. CML Microsystems has a long history of profitability and has a strong balance sheet with no debt. The company’s shares are listed on the London Stock Exchange.
Summary
Investing in WOLFSPEED can be a risky proposition, as the company just reported a net loss of $113.3 million for its fourth quarter. This is a stark contrast to the prior year’s quarter, which reported a net income of $32.4 million. Total revenue for the quarter was up 3.2% over the prior year, but this gain was not enough to outweigh the costs associated with the company’s operations. Investors should carefully consider WOLFSPEED’s future prospects before deciding whether to invest in the company.
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