Updated Aug 11 at 6:02pm ET.
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Electrovaya reported a profit of 1 cent per share, which was below the 3 cents analysts expected. Revenue for the quarter was about 17.7 million dollars, roughly matching expectations but showing a slowdown from the 20 percent growth seen earlier in the year. The stock fell about 21 percent following the news.
While the profit miss is disappointing, the company achieved a record gross margin of nearly 35 percent, which is the percentage of revenue left after paying for the direct costs of making its batteries. Management also highlighted a new commercial agreement with Amazon and the launch of a high-power energy storage platform. These developments suggest the company is still successfully expanding its reach into data centers and robotics, even if this specific quarter was bumpy.
The company introduced a new energy storage platform that can deliver up to 7 megawatts of continuous power. This system is specifically built for mission-critical applications like data centers and AI infrastructure, where a steady and massive power supply is required to keep servers running.
Production is slated to begin in early 2027 at the company's upcoming Jamestown facility in New York. This move is important because it broadens Electrovaya's market beyond industrial forklifts and into the rapidly growing data center sector. It also allows the company to take advantage of U.S. investment tax credits, which can help lower the costs of domestic manufacturing.
Raymond James reaffirmed its Strong Buy rating and set a price target of 22 dollars. This target is significantly higher than the current price of about 7 dollars, reflecting high confidence in the company's growth path.
This call came shortly after the company announced a new relationship with Amazon. It suggests that analysts see the company's technical edge in battery longevity as a sustainable advantage that will help it win more large-scale industrial and robotics contracts over time.
Source: Raymond James
Electrovaya entered into a commercial agreement and a warrant transaction with Amazon. This partnership focuses on using the company's Infinity battery technology for Amazon's material handling operations, which includes the vehicles and robots used to move goods in warehouses.
Winning a customer as large as Amazon is a major validation of Electrovaya's technology. The deal also includes warrants, which are financial instruments that give Amazon the right to buy shares in the company later. This aligns Amazon's interests with Electrovaya's success and could lead to much larger orders as Amazon continues to automate its logistics network.
Source: GlobeNewsWire
Analysts have steadily maintained their support for the company following a series of positive updates regarding new commercial partnerships and product launches. All 4 analysts rate the stock a buy, with an average target price suggesting 159% upside.
Management has beaten expectations in five of the last eight quarters. While this latest report was a miss, the company has successfully stayed profitable for over a year.
| Expectation | |
|---|---|
| EPS | $0.07 |
| Revenue | $28M |
Accesswire · Press release · Aug 10
Accesswire · Press release · Aug 6
Seeking Alpha · Opinion · Jul 29
GlobeNewsWire · Press release · Jul 15
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