NASDAQ$WOLF

Wolfspeed Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported strong revenue growth driven by customer ramp-up and silicon carbide leadership

Cree, Inc. reported a strong Q4 with revenue from continuing operations of $145.8 million, a 35% increase year-over-year. The company's GAAP net loss was $145.2 million, or $1.26 per diluted share, while non-GAAP net loss was $26.9 million, or $0.23 per diluted share. The company is on track to bring the world’s largest silicon carbide fab online in early calendar 2022.

  • Revenue from continuing operations increased by 35% year-over-year to $145.8 million.
  • GAAP net loss from continuing operations was $145.2 million, or $1.26 per diluted share.
  • Non-GAAP net loss from continuing operations was $26.9 million, or $0.23 per diluted share.
  • Company liquidated its approximately 3.3% common stock ownership interest in ENNOSTAR and received net proceeds of $66.4 million.

Headline financials

Total Revenue

$146M

Previous: $206M-29.1%
EPS (adj)

-$0.23

Previous: -$0.18-27.8%
Capital Expenditures

$177M

Previous: $68.2M+158.8%
Free Cash Flow

-$227M

Previous: -$59.7M-279.4%
Net Income

-$145.20

Previous: -$38.9M+100.0%
Operating Income

-$132.70

Previous: -$64.3M+100.0%
Gross Profit

$43.80

Previous: $50.8M-100.0%
Cash & Equivalents

$379.00

Previous: $449M-100.0%
Total Assets

$3.45K

Previous: $3.23B-100.0%
Stock-Based Comp

$12.9M

Previous: $12M+7.5%

Revenue & EPS history

Wolfspeed · Revenue · Quarterly

$146M

Q4 2021-29.1%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Wolfspeed · $197M total across 2 segments · Q1 2024

  • Power Products
    $101M
  • Materials Products
    $96.2M

Forward guidance

For its first quarter of fiscal 2022, Cree targets revenue in a range of $144 million to $154 million. GAAP net loss is targeted at $78 million to $82 million, or $0.67 to $0.70 per diluted share. Non-GAAP net loss is targeted to be in a range of $25 million to $29 million, or $0.21 to $0.25 per diluted share.

Tailwinds

  • Revenue target between $144 million and $154 million.
  • Non-GAAP net loss target between $25 million and $29 million.
  • Company is on track to bring the world’s largest silicon carbide fab online in early calendar 2022.
  • Customers are ramping up production earlier and steeper than originally anticipated.
  • Continued growth and conversion of opportunities in our device pipeline.

Headwinds

  • GAAP net loss target between $78 million and $82 million.
  • Risk of new and different government restrictions that limit our ability to do business.
  • Risk of infection in our workforce and subsequent impact on our ability to conduct business.
  • Risk that our supply chain or customer demand may be negatively impacted.
  • Risk posed by vaccine resistance and the emergence of fast-spreading variants.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 2 quarterly earnings reports

Historical avg

-2.8%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+21.6%

Avg return

30 days after

41%

28 / 68 earnings

Positive

+29.7%

Q1 2022

Best reaction

-35.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+3.2%+38.6%
Q2 2026-9.7%-8.1%-3.7%
Q1 2026-7.9%-14.1%+9.0%
Q4 2025+0.0%-5.8%+59.4%
Q3 2025-26.2%
Q2 2025+1.5%
Q1 2025-35.3%
Q4 2024-2.6%
Q3 2024-12.8%
Q2 2024-17.2%
Q1 2024+17.9%
Q4 2023-19.0%
Q3 2023-18.3%
Q2 2023-5.5%
Q1 2023-17.2%
Q4 2022+27.5%
Q3 2022-9.6%
Q2 2022+0.6%
Q1 2022+29.7%
Q4 2021-10.4%
Q3 2021-15.5%
Q2 2021-1.8%
Q1 2021-7.0%
Q4 2020-12.5%
Q3 2020+4.1%
Q2 2020-10.5%
Q1 2020-1.2%
Q4 2019-15.9%
Q3 2019+0.2%
Q2 2019+5.0%
Q1 2019+12.7%
Q4 2018-8.0%
Q3 2018-2.8%
Q2 2018-1.9%
Q1 2018+16.7%
Q4 2017-1.6%
Q3 2017-10.8%
Q2 2017+4.9%
Q1 2017-9.6%
Q4 2016-16.6%
Q3 2016+7.5%
Q2 2016+9.0%
Q1 2016-6.0%
Q4 2015+2.9%
Q3 2015-7.8%
Q2 2015+9.6%
Q1 2015-17.1%
Q4 2014-9.8%
Q3 2014-11.3%
Q2 2014+7.7%
Q1 2014-15.8%
Q4 2013-21.3%
Q3 2013+1.7%
Q2 2013+21.0%
Q1 2013+13.6%
Q4 2012+5.3%
Q3 2012+3.1%
Q2 2012+2.3%
Q1 2012-0.4%
Q4 2009-4.7%
Q4 2011-4.7%
Q3 2011+0.5%
Q3 2010+0.5%
Q2 2011-3.1%
Q2 2010-3.1%
Q4 2010+4.8%
Q1 2010+4.8%
Q1 2011+4.8%

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