Back to top

Image: Bigstock

Maxwell (MXWL) Q4 Loss Wider than Expected, Revenues Beat

Read MoreHide Full Article

Maxwell Technologies, Inc. incurred adjusted loss of 28 cents per share in the fourth-quarter of 2016 (considering stock-based compensation as a regular expense), wider than the Zacks Consensus Estimate of a loss of 21 cents by 33.3%. On a year-over-year basis, the quarterly loss widened from the year-ago loss of 2 cents per share.

 

 

Excluding one-time items, the company reported loss of 38 cents per share, substantially wider than the loss of 7 cents incurred in the prior-year quarter.

During 2016, the company incurred adjusted loss of 84 cents per share, wider than the Zacks Consensus Estimate of a loss of 60 cents by 40%. The full-year adjusted loss figure was also wider than the year-ago loss of 48 cents per share.

Revenues

Maxwell Technologies’ fourth-quarter revenues of $26.4 million surpassed the Zacks Consensus Estimate of $26.1 million by 1.3%. However, revenues plunged 47% from the year-ago figure of $49.8 million. High voltage revenues grew 53.6% in the fourth quarter, whereas ultracapacitor revenues declined 65.9%, resulting in the decrease in total revenue.

In 2016, the company’s revenues of $121.2 million surpassed the Zacks Consensus Estimate of $120.7 million by 0.4%. Full-year revenues, however, declined 27.6% year over year from $167.4 million at year-end 2015.

Maxwell Technologies, Inc. Price, Consensus and EPS Surprise

 

Maxwell Technologies, Inc. Price, Consensus and EPS Surprise | Maxwell Technologies, Inc. Quote

Operational Highlights

In the quarter under review, the company’s cost of revenue was $20.7 million, down 41.8% year over year.

Total operating expenses were $15.6 million in the quarter (or 59.1% of revenues) compared with $15.8 million (or 31.7% of revenues) in the prior-year quarter.

Financial Condition

As of Dec 31, 2016, Maxwell Technologies had cash and cash equivalents of $25.4 million compared with $24.4 million as of Dec 31, 2015.

As of Dec 31, 2016, long-term debt (excluding current portion) was $0.04 million as against $0.05 million as of Dec 31, 2015.

Guidance

Maxwell expects total revenue in the range of $25–$27 million in the first quarter of 2017. Non-GAAP gross margin is expected to be 20–24%. Non-GAAP operating expenses are projected in the range of $12.4–$12.8 million.

Key Strategic Initiatives

Along with the earnings call, Maxwell announced a few key strategic initiatives that management has recently undertaken for business diversification and cost restructure. As part of these initiatives, Maxwell has agreed to purchase Nesscap Energy, Inc., a developer and manufacturer of ultracapacitor products, for $23.2 million. The deal is expected to be completed in the second quarter of 2017. Once closed, the transaction is expected to be immediately accretive to the company’s adjusted earnings per share as well as deliver positive adjusted EBITDA in 2017.

Also, Maxwell announced that it has launched a global restructuring plan that includes a reduction-in-force, significant cost-containment actions as well as a manufacturing and supply chain consolidation to further optimize cost structure and position it to better withstand near-term headwinds. Maxwell expects to achieve approximately $6 million in annualized savings through these initiatives.

Further, the company has expanded its partnership with CRRC Qingdao Sifang Rolling Stock Research Institute Co. Ltd. To this end, the company entered into a definitive agreement in Jan 2017 to localize manufacturing of ultracapacitor-based modules for use in the China bus market. This partnership will enable Maxwell to compete more effectively in the China bus market, going ahead.

Zacks Rank

Maxwell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

Sempra Energy’s (SRE - Free Report) fourth-quarter 2016 adjusted earnings per share (EPS) of $1.52 beat the Zacks Consensus Estimate of $1.42 by 7%. Earnings also improved 4.1% year over year.

Entergy Corp. (ETR - Free Report) reported fourth-quarter 2016 operational earnings of 31 cents per share that surpassed the Zacks Consensus Estimate of 11 cents by 181.8%. The reported number, however, declined 80.4% year over year.

Public Service Enterprise Group Inc. (PEG - Free Report) or PSEG reported fourth-quarter 2016 adjusted operating earnings of 54 cents per share, which exceeded the Zacks Consensus Estimate of 52 cents by 3.8%. Earnings also improved 8% on a year-over-year basis.

Everything You Need to Know About Snapchat BEFORE It Goes Public

You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day 1?

In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges. You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months.

Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Sempra Energy (SRE) - free report >>

Entergy Corporation (ETR) - free report >>

Public Service Enterprise Group Incorporated (PEG) - free report >>

Published in