Microvast Holdings Inc (NASDAQ:MVST) Posts Loss

Microvast Holdings Inc (NASDAQ:MVST), a leading provider of battery technologies for commercial and specialty vehicles, stock plunges 32.25% (As on April 2, 11:31:17 AM UTC-4, Source: Google Finance) after the company reported Non-GAAP adjusted net loss of $11.4 million, compared to non-GAAP adjusted net loss of $15.9 million in Q4 2022. Adjusted EBITDA of negative $2.6 million, compared to adjusted EBITDA of negative $11.8 million in Q4 2022.Capital expenditures for fiscal year 2023 was of $186.8 million, compared to $150.9 million in 2022, and were driven by investments in manufacturing capacity expansions in Huzhou, China and Clarksville, Tennessee. Cash, cash equivalents, restricted cash and short-term investment of $93.8 million as of December 31, 2023, compared to $327.7 million as of December 31, 2022; decrease largely due to significant capital expenditure towards PP&E in the U.S. and Huzhou, China.

MVST in the fourth quarter of FY 23 has reported the adjusted loss per share of 4 cents, beating the analysts’ estimates for the adjusted loss per share of 7 cents. The company had reported the adjusted revenue growth of 61.4 percent to $104.58 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $94.43 million.

Additionally, in APAC, with the Huzhou Phase 3.1 expansion now in full operation since Q3 of last year, the company anticipates another year of steady revenue growth from mature operations that are now self funding and profitable. To get the U.S. to the same mature and steady state requires the company to secure financing to complete Clarksville Phase 1A. This remains a key initiative that the company hope to bring to a successful close as early as possible

Microvast expects first-quarter revenue to be in the range $65 million to $75 million, representing growth of 40% to 60% on a year-over-year basis. The company said it’s targeting gross margin of 20% to 25% in the first quarter.

Microvast also noted it’s targeting financing solutions in the first quarter to complete Clarksville Phase 1a, which should help bring in longer-term domestic customer contracts. The company said this is a “key initiative” that it hopes to bring to a successful close “as early as possible.” Further, new customer wins in APAC and EMEA that expand the presence in differentiated commercial vehicle markets as OEM product lines and segments continue to electrify

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