Wolfspeed's stock gains as company notches smaller loss than expected

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Silicon-carbide company also gives a better-than-expected outlook on the bottom line

Wolfspeed Inc. shares rose 8% in after-hours trading Monday after the silicon-carbide company forecast a slimmer-than-expected loss for its ongoing quarter.

The company posted a fiscal first-quarter net loss of $402.7 million, or $3.22 a share, compared with a loss of $26.2 million, or 21 cents a share, in the year-earlier period. On an adjusted basis, Wolfspeed WOLF, -3.41% lost 53 cents a share, whereas it lost 24 cents a share a year before. The FactSet consensus was for a 67-cent loss per share.“As part of expanding its production footprint to support expected growth, Wolfspeed is incurring significant factory start-up costs relating to facilities, the company is constructing or expanding that have not yet started revenue-generating production,” the company said in its release.

Revenue came in at $197.4 million, up from $189.4 million a year prior. Analysts tracked by FactSet were modeling $196.2 million. Looking to the fiscal second quarter, the company models $192 million to $222 million in revenue, where analysts had been looking for $207.1 million. The company also anticipates an adjusted net loss from continuing operations of 56 cents a share to 70 cents a share, whereas the FactSet consensus was for a 69-cent loss per share.“The market opportunity for silicon carbide stands at $6 billion today, up from $400 million just five years ago,” Chief Executive Gregg Lowe said in a release.

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