Latest news with #Priyanka.G
Mint
08-05-2025
- Automotive
- Mint
Wolfspeed sees 2026 revenue below estimates; shares slump
May 8 (Reuters) - Chipmaker Wolfspeed forecast 2026 revenue below Wall Street estimates and reported a 7% decline in third-quarter revenue on Thursday, sending its shares down 11% in extended trading. The company, which manufactures chips using silicon carbide, a more energy-efficient material than traditional silicon, has been affected by slower-than-expected EV adoption, compounded by higher auto part prices driven by new tariffs. These factors have led customers to delay product launches, weakening demand for Wolfspeed's products. Broader macroeconomic challenges, including high interest rates and rising capital costs, have also delayed investment cycles in the industrial and energy sectors, which could further pressure order activity. The company expects revenue of $850 million in 2026, below analysts' estimate of $958.7 million. The company's revenue for the third quarter came in at $185.4 million, compared with an average estimate of $185.9 million, according to data compiled by LSEG. Wolfspeed, which counts General Motors and Mercedes-Benz among its customers, was set to receive $750 million in federal funding for its silicon carbide wafer plant in North Carolina. The company had planned to use the funding to accelerate U.S.-based chip manufacturing tied to EVs and renewable energy. However, the future of the Biden-era legislation that promised subsidies for domestic chip manufacturing remains uncertain after the Trump administration called on lawmakers to repeal the federal funding under the CHIPS Act. This made Wolfspeed's shares lose half of their value in March, when they hit a 27-year low. Wolfspeed reported a net loss per share of 72 cents for the third quarter, compared with estimates of a loss of 82 cents a share. (Reporting by Priyanka.G in Bengaluru; Editing by Alan Barona)
The Star
01-05-2025
- Business
- The Star
Roku forecasts second-quarter revenue below estimates as economic uncertainty weighs
FILE PHOTO: The Roku company logo is displayed on a building in Austin, Texas, U.S., October 25, 2021. REUTERS/Mike Blake/File Photo (Reuters) -Roku forecast second-quarter revenue below Wall Street estimates on Thursday, as customers pull back spending amid an uncertain market environment, sending shares of the company down 4% in extended trading. Roku, the company whose streaming service saw major success during the pandemic, is now experiencing a slowdown as clients and brands tighten advertising budgets amid persistent inflation and broader macroeconomic uncertainties. "While there is more macro uncertainty than normal, we are providing our best outlook based on our current visibility and what we are observing in our business," the company said in a letter to shareholders. The company initially gained popularity through its small devices that connected to televisions, giving users access to streaming platforms like Netflix. It later expanded its offerings to include Roku streaming sticks and Roku-branded TVs. It expects revenue of $1.07 billion for the second quarter, compared with analysts' average estimate of $1.09 billion, according to data compiled by LSEG. The company reported revenue of $1.02 billion in the first quarter, compared to analysts' average estimate of $1.01 billion, according to data compiled by LSEG. (Reporting by Priyanka.G in Bengaluru; Editing by Alan Barona)
Mint
01-05-2025
- Business
- Mint
Monolithic Powers key AI data center segment reports sluggish quarterly sales
May 1 (Reuters) - Monolithic Power Systems on Thursday reported weakness in its key enterprise data segment that caters towards AI applications, fanning concerns around demand for its products that are an essential fixture in modern data centers. The Kirkland, Washington-based company, which counts AI chip heavyweight Nvidia among its customers, reported a close to 17% sales drop, to $132.9 million, in the unit which provides power management tools for AI data centers. However, Monolithic expects revenue from the segment to ramp-up in the second half of this year, it said in a statement. The company's shares fell about 3% in after-hours trading, as declining sales in the key segment overshadowed its optimistic forecast for the current quarter. It forecast second-quarter revenue between $640 million and $660 million. Analysts' on average expect $636.1 million, according to data compiled by LSEG. Its first-quarter revenue grew nearly 40% to $637.6 million, compared with estimates of $634.3 million, helped by growth in the 'storage and computing' and automotive segments. In chip industries like automotive and consumer electronics, analysts widely expected the pull-in of customer orders to the first quarter of the year, in a bid to side-step steep tariffs from U.S. President Donald Trump. "We continue to invest in new technology, expand into new markets, and to diversify our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply stability, and swiftly adapt to market changes as they occur," the company said. Quarterly adjusted profit came in at $4.04 per share, beating estimates of $4.01 per share. (Reporting by Priyanka.G and Arsheeya Bajwa in Bengaluru; Editing by Shailesh Kuber) First Published: 2 May 2025, 03:18 AM IST
