Wolf speed Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Wolf speed

WOLF 21.04

-7.9%

3:37 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: pompsander who wrote (3408)	8/2/2000 10:44:43 PM
From: Don Edgerton	of 10714

Checked the earnings news release. Had 13% sequential growth. Looking to 15% sequential growth which is an increase. YOY sales up 85%. I believe the 65% increase relates to revenue growth, not EPS growth. YOY EPS was plus 150%. EPS growth usually exceeds revenue growth in young companies due to operating leverage. (i.e. more revenue to cover fixed costs which tend to decline as a portion of revenue. RE: The example of prices falling 25% and costs 50%, then you need sequential YOY unit growth of 120% to achieve revenue growht of plus 65%. With the declining costs, gross margins should stay the same. On the other hand, for many hip shooter investors, the above is irrelevant.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next