Earnings Preview: Wolfspeed (WOLF) Q2 Earnings Expected to Decline

Core Viewpoint - Wolfspeed (WOLF) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ending December 2024, with a consensus outlook indicating a significant impact on its near-term stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to show a quarterly loss of $1.01 per share, reflecting a year-over-year change of -83.6$179.37 million, down 13.9% from the previous year [3]. - The consensus EPS estimate has been revised 0.74% higher in the last 30 days, indicating a slight reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Wolfspeed is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.49%, indicating a bearish outlook from analysts [10][11]. - Historically, Wolfspeed has beaten consensus EPS estimates three out of the last four quarters, with a recent surprise of +9.90% when it reported a loss of $0.91 instead of the expected loss of$1.01 [12][13]. Stock Movement Potential - The stock may experience upward movement if the actual earnings exceed expectations, while a miss could lead to a decline [2]. - Despite the negative Earnings ESP reading, it does not definitively indicate an earnings miss, as other factors can influence stock performance [9][14]. Conclusion - Wolfspeed does not currently appear to be a strong candidate for an earnings beat, and investors should consider additional factors when making decisions regarding the stock ahead of the earnings release [16].