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After Amprius Technologies reported its November results, we updated our fair value and raised our annual revenue growth assumption to 60%. We have added the shift toward using outside manufacturing partners to our assessment of how the company expands its profit margins. We also added the role of domestic production regulations in protecting the business from foreign competition to what we track. Our updated projections now include the multi-year revenue floor provided by the new $75 million government contract.
Amprius reported third-quarter revenue of about $39 million, an 83 percent jump from the same time last year. While the company is still losing money, its net loss narrowed to $3.5 million. Management also raised its full-year revenue target to $145 million, signaling that demand for its high-capacity silicon batteries remains strong.
This growth is a key sign that the company is successfully moving from testing its technology to selling it at scale. Amprius makes batteries that hold more energy than standard ones, which is critical for the drones and satellites it serves. The fact that U.S. sales more than doubled from the previous quarter suggests the company is gaining real traction as it ramps up its manufacturing lines.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company reports its latest quarterly results after the market closes today. Analysts are looking for revenue of about 40 million dollars, which would continue the company's recent trend of rapid growth as it moves from prototypes to commercial sales. For a business at this stage, the most important things to watch are the manufacturing yields and the cash runway. We will be looking for signs that the automated production lines are becoming more efficient, which is the only way to lower costs and eventually reach profitability without needing to raise more cash.
Amprius will share its latest quarterly results in about a week. Analysts are looking for revenue of about 40 million dollars and a small loss per share. Because the company is in a high-growth phase, the most important thing to watch is how quickly it is scaling up its manufacturing. For a business like this, showing that it can produce batteries at high volumes while keeping costs under control is more important than the exact profit or loss for a single quarter.
Canaccord Genuity set its target for the battery maker at $14. This is lower than the $19 average target from other firms, but it still suggests the stock could rise significantly from its current price of about $7.60. While the target is lower than the peer average, it reflects the high expectations for the company's silicon nanowire technology. This tech aims to pack more energy into batteries for drones and aircraft, though the company still needs to prove it can manufacture these cells at a large enough scale to reach profitability.
Source: Canaccord Genuity
Management has shifted from a long streak of small beats to missing their own profit targets for three straight quarters. This suggests they are struggling to predict costs as they scale up production.
| Expectation | |
|---|---|
| EPS | $0.01 |
| Revenue | $43M |
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