Wolfspeed WOLF is scheduled to report its second-quarter fiscal 2025 results on Jan. 29.

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

For second-quarter fiscal 2025, WOLF expects non-GAAP net loss to be between 89 cents and $1.14 per share.

The Zacks Consensus Estimate for second-quarter fiscal 2025 loss is pegged at $1.01 per share. Wolfspeed reported a loss of 55 cents per share in the year-ago quarter.

Wolfspeed expects second-quarter fiscal 2025 revenues in the range of $160-$200 million.

The consensus estimate for revenues is pegged at $179.37 million, suggesting a decline of 13.93% from the year-ago quarter’s reported number.

WOLF’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the same in one quarter, the average surprise being 34.56%.

Let’s see how things have shaped up for Wolfspeed prior to this announcement.

Factors to Note

Wolfspeed’s fiscal second-quarter performance is expected to have benefited from its position in the semiconductor market, particularly within the electric vehicle (EV) and high-voltage power sectors.

Wolfspeed’s EV revenues have been robust, with more than 250% year-over-year growth in the fiscal first quarter, and the momentum is expected to have continued in the fiscal second quarter. This is driven by an increase in the total number of car models using low-speed silicon carbide devices in the powertrain.

WOLF’s focus on becoming the leader in 200-millimeter silicon carbide by cutting costs and optimizing investments is expected to have enhanced profitability and operational efficiency in the to-be-reported quarter. Wolfspeed is aiming to take advantage of the growing demand for silicon carbide in the global shift to EVs, as well as in industrial and energy markets.

Wolfspeed anticipates increased revenue contributions from its Mohawk Valley facility, targeting around $50 million to $70 million, as the facility is ramping up production.

The company has a strong backlog of design wins, supporting over 125 different car models across more than 30 original equipment manufacturers. This extensive pipeline is likely to have been a tailwind for WOLF in the to-be-reported quarter.

In the first quarter of fiscal 2025, WOLF recorded $1.3 billion of design wins — its third highest on record — and $1.5 billion of design-ins, approximately 70% of which were for EV platforms. The trend is expected to continue in the second quarter.

However, increasing competitive pressure, delays in expected EV demand, persistent supply chain constraints and weakness in the industrial and energy domain across Asia, particularly China, are expected to hurt WOLF’s top line in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.

Wolfspeed currently has an Earnings ESP of -2.49% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Bill Holdings BILL has an Earnings ESP of +29.71% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bill Holdings’ shares have gained 17.4% in the trailing 12 months. BILL is set to report its second-quarter fiscal 2025 results on Feb. 6.

AMETEK AME has an Earnings ESP of +0.54% and a Zacks Rank of 2 at present.

AMETEK shares have gained 13.7% in the trailing 12 months. AME is set to report its fourth-quarter 2024 results on Feb. 4.

CyberArk Software CYBR has an Earnings ESP of +2.71% and a Zacks Rank of 2 at present.

CyberArk Software shares have surged 52.4% in the trailing 12 months. CYBR is set to report its fourth-quarter 2024 results on Feb. 13.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AMETEK, Inc. (AME) : Free Stock Analysis Report

Wolfspeed (WOLF) : Free Stock Analysis Report

CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report

BILL Holdings, Inc. (BILL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research