Wolfspeed, a semiconductor company, experienced a steep decline in its shares, which fell 14% to $45.60 following its fourth-quarter results. The stock closed down 2.3% to $53.17 and has seen a year-to-date decrease of 23%.
For the quarter ended June 25, Wolfspeed reported a loss of $113.3 million, or 91 cents a share, compared to a net income of $32.4 million, or 26 cents a share, in the same period last year. Adjusted losses for the quarter amounted to 42 cents a share, surpassing analysts' expectations of a 20 cents a share loss.
Factory Start-up Costs
Wolfspeed attributed a significant portion of its operating expenses to $39.5 million in factory start-up costs incurred during the quarter.
The company anticipates adjusted losses between 60 cents a share and 75 cents a share for the current quarter. Analysts polled by FactSet had predicted a smaller adjusted loss of 29 cents a share.
Considering these results, Wolfspeed faces challenges ahead as it aims to overcome losses and regain stability in the market.
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