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Maxwell (MXWL) Q3 Loss Narrower Than Expected, Revenues Lag
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Maxwell Technologies, Inc. reported adjusted loss of 16 cents per share in the third quarter of 2018, which was narrower than the Zacks Consensus Estimate of loss of 18 cents. However, on a year-over-year basis, the bottom line widened from the year-ago loss of 13 cents per share.
Excluding one-time items, the company incurred loss of 23 cents per share, narrower than loss of 37 cents in the prior-year quarter.
Revenues
Maxwell Technologies’ third-quarter revenues of $33.7 million missed the Zacks Consensus Estimate of 34 million by a marginal 0.9%. However, the top line decreased 6.4% from the year-ago quarter’s $36 million.
High voltage revenues fell 12.8% in the quarter and energy storage revenues declined 3.7%, resulting in the overall decrease in total revenues.
Operational Highlights
In the quarter under review, the company’s cost of revenues was $27.4 million, down 4% year over year.
Total operating expenses were $14.6 million compared with $20.7 million in the prior-year quarter. The sequential decrease was driven primarily by lower stock-based compensation expenses.
Capital expenditures during the quarter were $1.9 million, primarily related to the expansion of the Korea manufacturing facility, and ultra capacitor, lithium-ion capacitor and dry battery electrode equipment.
Q3 Business Highlights
Maxwell announced a grid energy storage subsystem design-in with Siemens Transmission Solutions. This solution is intended to stabilize global power grids, enabling ISOs, electric utilities and transmission system operators to have better control of their grids and reduce the risk of blackouts.
Maxwell announced that its CONDIS® branded capacitors will be the first to market with the largest 550kV DC meshed grid, which includes four types of new capacitors for DC converter valve ultra high voltage circuit breakers using four lines and four substations.
Maxwell Technologies, Inc. Price, Consensus and EPS Surprise
As of Sep 30, 2018, Maxwell Technologies had cash and cash equivalents of $23.6 million compared with $50.1 million as of Dec 31, 2017.
As of Sep 30, 2018, long-term debt (excluding current portion) was $36.5 million compared with $35.1 million as of Dec 31, 2017.
Net cash used in operating activities was $14 million at the end of third-quarter 2018, up from $2.3 million at the end of the prior-year quarter.
Guidance
Maxwell Technologies has lowered its total revenue expectations to $25-$27 million for the fourth quarter of 2018, from its previous range of $32-$36 million. The company projects adjusted net loss to be 18 cents per share.
Adjusted gross margin is expected to be 18-20% compared to the previous quarter’s 18.5-21.5%. Adjusted operating expenses are projected to be $12.6-$13.0 million.
TE Connectivity (TEL - Free Report) delivered fourth-quarter fiscal 2018 adjusted earnings of $1.35 per share, beating the Zacks Consensus Estimate by 2 cents.
AMETEK (AME - Free Report) delivered third-quarter 2018 adjusted earnings of 82 cents per share, which beat the Zacks Consensus Estimate by 4 cents and also exceeded management’s guidance of 76-78 cents per share.
Yandex N.V. (YNDX - Free Report) reported third-quarter 2018 adjusted earnings of 28 cents (RUB 15.25) per share missing the Zacks Consensus Estimate by 2 cents.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Maxwell (MXWL) Q3 Loss Narrower Than Expected, Revenues Lag
Maxwell Technologies, Inc. reported adjusted loss of 16 cents per share in the third quarter of 2018, which was narrower than the Zacks Consensus Estimate of loss of 18 cents. However, on a year-over-year basis, the bottom line widened from the year-ago loss of 13 cents per share.
Excluding one-time items, the company incurred loss of 23 cents per share, narrower than loss of 37 cents in the prior-year quarter.
Revenues
Maxwell Technologies’ third-quarter revenues of $33.7 million missed the Zacks Consensus Estimate of 34 million by a marginal 0.9%. However, the top line decreased 6.4% from the year-ago quarter’s $36 million.
High voltage revenues fell 12.8% in the quarter and energy storage revenues declined 3.7%, resulting in the overall decrease in total revenues.
Operational Highlights
In the quarter under review, the company’s cost of revenues was $27.4 million, down 4% year over year.
Total operating expenses were $14.6 million compared with $20.7 million in the prior-year quarter. The sequential decrease was driven primarily by lower stock-based compensation expenses.
Capital expenditures during the quarter were $1.9 million, primarily related to the expansion of the Korea manufacturing facility, and ultra capacitor, lithium-ion capacitor and dry battery electrode equipment.
Q3 Business Highlights
Maxwell announced a grid energy storage subsystem design-in with Siemens Transmission Solutions. This solution is intended to stabilize global power grids, enabling ISOs, electric utilities and transmission system operators to have better control of their grids and reduce the risk of blackouts.
Maxwell announced that its CONDIS® branded capacitors will be the first to market with the largest 550kV DC meshed grid, which includes four types of new capacitors for DC converter valve ultra high voltage circuit breakers using four lines and four substations.
Maxwell Technologies, Inc. Price, Consensus and EPS Surprise
Maxwell Technologies, Inc. Price, Consensus and EPS Surprise | Maxwell Technologies, Inc. Quote
Financial Condition
As of Sep 30, 2018, Maxwell Technologies had cash and cash equivalents of $23.6 million compared with $50.1 million as of Dec 31, 2017.
As of Sep 30, 2018, long-term debt (excluding current portion) was $36.5 million compared with $35.1 million as of Dec 31, 2017.
Net cash used in operating activities was $14 million at the end of third-quarter 2018, up from $2.3 million at the end of the prior-year quarter.
Guidance
Maxwell Technologies has lowered its total revenue expectations to $25-$27 million for the fourth quarter of 2018, from its previous range of $32-$36 million. The company projects adjusted net loss to be 18 cents per share.
Adjusted gross margin is expected to be 18-20% compared to the previous quarter’s 18.5-21.5%. Adjusted operating expenses are projected to be $12.6-$13.0 million.
Zacks Rank
Maxwell Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Computer and Technology Releases
TE Connectivity (TEL - Free Report) delivered fourth-quarter fiscal 2018 adjusted earnings of $1.35 per share, beating the Zacks Consensus Estimate by 2 cents.
AMETEK (AME - Free Report) delivered third-quarter 2018 adjusted earnings of 82 cents per share, which beat the Zacks Consensus Estimate by 4 cents and also exceeded management’s guidance of 76-78 cents per share.
Yandex N.V. (YNDX - Free Report) reported third-quarter 2018 adjusted earnings of 28 cents (RUB 15.25) per share missing the Zacks Consensus Estimate by 2 cents.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>