Wolfspeed Stock Plummets, Firm Names 2 Board Members to Help Deal With Lenders
Wolfspeed reported fiscal third-quarter sales declined and its loss widened as revenue at the chipmaker's Materials Products division slumped.
The struggling firm also added two new board members to help deal with its lenders.
In March, Wolfspeed warned that it might not receive money and tax breaks it was to scheduled to get from the CHIPS Act.Wolfspeed (WOLF) shares plunged 25% Friday, a day after the struggling silicone carbide chipmaker's revenue declined and its loss increased as sales at its Materials Products unit fell. In addition, the company added two new board members as it works to deal with its debt.
Wolfspeed reported fiscal third-quarter revenue dropped nearly 8% year-over-year to $185.4 million, missing Visible Alpha estimates. It posted an adjusted loss of $0.72 per share, $0.10 per share wider than a year ago.
Materials Products segment revenue tumbled 21% to $77.9 million. Revenue at its Power Products division was up 5% to $107.5 million.
Chair Tom Werner explained that Wolfspeed has made significant progress in its efforts in "strengthening our capital structure, improving our path to profitability, and raising cost effective capital to support our growth plan." Werner added that the company is continuing to work closely with its lenders "on ways to address our capital structure so that Wolfspeed has a strong financial foundation to support its continued success."
The semiconductor firm was already struggling when Werner, then the outgoing interim Executive Chair, warned in March that Wolfspeed may not realize up to $750 million in grants plus $1 billion in tax credits from the CHIPS and Science Act of 2022. That sent shares cratering.
In a press release separate from the financial report, Werner announced that Paul Walsh and Mark Jensen were appointed to the board. Werner explained that the two bring experience in dealing with lenders that "will be critical to our efforts in reaching an outcome that will support our long-term success."
Shares of Wolfspeed have lost half their value this year.
Read the original article on Investopedia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a day ago
- Yahoo
Here's How Much Traders Expect Apple Stock to Move After WWDC
Apple (AAPL) is holding its annual Worldwide Developers Conference next week, with a keynote address set for Monday at 1 p.m. ET, when the tech giant is expected to announce new features and software updates, with markets expecting a modest stock move following the event. Current options pricing suggests markets expect a move of about 3.5% in either direction by the end of the week. Based on Friday's closing price of $203.92, that would put Apple shares at about $210.99, at the high end, or $196.85 on the low end. Apple shares are about 19% below where they started the year, but have partially recovered from their steep losses in the days following President Trump's April 2 tariff announcement. They have traded sideways in recent weeks amid uncertainty about how tariffs will affect iPhone manufacturing and prices. Apple stock has had a mixed performance the week of its WWDC over the last three years. Last year, when it unveiled its Apple Intelligence suite of AI features, shares rose nearly 8% the week of the event. The year prior, when Apple debuted its Vision Pro headset, shares were flat, and in 2022 the stock fell roughly 5.6% as Apple announced new MacBook laptops and its iOS 16 operating system. Last month, Bloomberg reported that Apple is considering a major change to its software naming, and is likely to announce it during WWDC. The new system would make all its operating systems use the number 26, for 2026, for each year rather than different systems based on the version number like iOS 18 and macOS 15. Bloomberg also reported that Apple is expected to announce an opening of its internal AI models to outside developers, looking to boost the creation of new AI-powered apps. Analysts are largely bullish on the iPhone maker, with nine brokers tracked by Visible Alpha calling the stock a "buy," compared to two each rating it a "hold" or "sell." The average price target of about $228 implies nearly 12% upside to the stock's close Friday. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Yahoo
Brown-Forman Stock Plunges as Jack Daniel's Maker Warns of Economic Challenges
Brown-Forman said it faces a challenging operating environment this year, and shares sank to a more than 11-year low. The maker of Jack Daniel's whiskey and other alcoholic beverages warned about the impact of macroeconomic volatility, soft consumer demand, tariffs, and sales of used barrels. Fiscal fourth-quarter profit and sales missed (BF.B) was the worst-performing stock in the S&P 500 Thursday after the maker of Jack Daniel's whiskey warned about a "challenging" economic outlook this year. The company that also has brands such as Woodford Reserve, Chambord, and Korbel predicted the operating environment in fiscal 2026 will have "low visibility due to macroeconomic and geopolitical volatility as we face headwinds from consumer uncertainty, the potential impact from currently unknown tariffs, and lower non-branded sales of used barrels." Brown-Forman sees both full-year organic sales and organic operating income to drop by a low-single-digit percent. CEO Lawson Whiting said Brown-Forman faced "softening consumer demand" as well as "an exceptionally challenging macroeconomic environment," and that it expects "continued headwinds." The company reported fiscal 2025 fourth-quarter earnings per share of $0.31, with revenue falling 7% year-over-year to $894 million. Both were short of Visible Alpha forecasts. Shares of Brown-Forman sank more than 15% in recent trading to their lowest level since September 2013. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Yahoo
TSLA: Tesla Delivery Growth Slumps as Goldman Lowers Forecasts
June 6 - Goldman Sachs cut its vehicle delivery and EPS forecasts for Tesla (NASDAQ:TSLA), citing weaker monthly datapoints in key regions such as China, the U.S. and Europe, according to a Thursday research note. In the U.S., deliveries through May are tracking down mid teens year-over-year, based on Wards and Motor Intelligence data. European registration figures for April show a 50% year-over-year decline, while May's data point to a mid-20% range year-over-year drop. In China, April and May registrations edged up slightly month-to-month but still reflect a 20% year-over-year decrease, Goldman Sachs said. As a result, the bank now forecasts Q2 2025 deliveries at 365,000 units, down from its prior 410,000-unit estimate and below the Visible Alpha consensus of 417,000. They see a possible range of 335,000 to 395,000, depending on June performance and the level of incentives Tesla uses. Goldman Sachs also cited weak consumer sentiment in North America and Europe, offset by stronger feedback in China. The bank noted that U.S. and European demand may be affected by brand perception, while China's decline could stem from growing competition and product-cycle timing. The firm trimmed its delivery forecasts for 2025, 2026 and 2027 to 1.575 million, 1.865 million and 2.15 million units, respectively. Despite the cuts, Goldman Sachs kept a Neutral rating on Tesla shares and lowered its 12-month price target to $285 from $295. This article first appeared on GuruFocus. Sign in to access your portfolio
