Wolfspeed Inc. (WOLF) saw its shares plummet 5.19% in after-hours trading on Thursday following the release of its third-quarter earnings report. The semiconductor company's mixed results disappointed investors, leading to the significant stock price decline.

The company reported quarterly revenue of $185.4 million, falling short of the analyst consensus estimate of $185.9 million. This represents a 7.62% decrease compared to the same period last year when the company reported sales of $200.70 million. Despite the revenue miss, Wolfspeed's adjusted earnings per share (EPS) came in at a loss of $0.72, beating the analyst estimate of a $0.77 loss per share.

However, investors seemed more concerned with Wolfspeed's bottom line, as the company reported a staggering net loss of $285.5 million for the quarter. Additionally, the adjusted gross margin stood at a mere 2%, indicating significant pressure on the company's profitability. The combination of declining revenue, substantial net loss, and razor-thin margins likely contributed to the negative market reaction, overshadowing the better-than-expected adjusted EPS figure.