It has been about a month since the last earnings report for Maxwell Technologies, Inc. . Shares have lost about 9.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Maxwell Posts In-Line Q1 Loss, Revenues Top Estimates
Maxwell Technologies incurred adjusted loss of $0.27 per share in the first quarter of 2017 (considering stock-based compensation as a regular expense), which was in line with the Zacks Consensus Estimate. The quarterly loss widened from the year-ago loss of $0.18 per share.
Excluding one-time items, the company reported loss of $0.32 per share, substantially wider than a loss of $0.22 incurred in the prior-year quarter.
Revenues
Maxwell Technologies’ first-quarter revenues of $26.7 million surpassed the Zacks Consensus Estimate of $25.2 million by 5.9%. However, revenues plunged 24.2% from the year-ago figure of $35.2 million. High voltage revenues grew 52.3% in the first quarter, whereas ultracapacitor revenues declined 39.5%, resulting in a decrease in total revenue.
Operational Highlights
In the quarter under review, the company’s cost of revenue was $20.5 million, down 19.8% year over year.
Total operating expenses were $15.2 million in the quarter (or 57% of revenues) compared with $15.9 million (or 45.1% of revenues) in the prior-year quarter.
Financial Condition
As of Mar 31, 2017, Maxwell Technologies had cash and cash equivalents of $20.9 million compared with $25.4 million as of Dec 31, 2016.
As of Mar 31, 2017, long-term debt (excluding current portion) was $0.03 million compared with $0.04 million as of Dec 31, 2016.
Guidance
Maxwell expects total revenue in the range of $34–$37 million in the second quarter of 2017. Adjusted gross margin is projected to be 23%, while adjusted operating expenses are anticipated in $12.6–$13 million band.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted down by 43.8% due to these changes.
Maxwell Technologies, Inc. Price and Consensus
VGM Scores
At this time, the stock has an average Growth Score of 'C', while Momentum is lagging a bit with a 'D'. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is solely suitable for growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #4 (Sell). We are looking for a below average return from the stock in the next few months.
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Why Is Maxwell (MXWL) Down 9.2% Since the Last Earnings Report?
It has been about a month since the last earnings report for Maxwell Technologies, Inc. . Shares have lost about 9.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Maxwell Posts In-Line Q1 Loss, Revenues Top Estimates
Maxwell Technologies incurred adjusted loss of $0.27 per share in the first quarter of 2017 (considering stock-based compensation as a regular expense), which was in line with the Zacks Consensus Estimate. The quarterly loss widened from the year-ago loss of $0.18 per share.
Excluding one-time items, the company reported loss of $0.32 per share, substantially wider than a loss of $0.22 incurred in the prior-year quarter.
Revenues
Maxwell Technologies’ first-quarter revenues of $26.7 million surpassed the Zacks Consensus Estimate of $25.2 million by 5.9%. However, revenues plunged 24.2% from the year-ago figure of $35.2 million. High voltage revenues grew 52.3% in the first quarter, whereas ultracapacitor revenues declined 39.5%, resulting in a decrease in total revenue.
Operational Highlights
In the quarter under review, the company’s cost of revenue was $20.5 million, down 19.8% year over year.
Total operating expenses were $15.2 million in the quarter (or 57% of revenues) compared with $15.9 million (or 45.1% of revenues) in the prior-year quarter.
Financial Condition
As of Mar 31, 2017, Maxwell Technologies had cash and cash equivalents of $20.9 million compared with $25.4 million as of Dec 31, 2016.
As of Mar 31, 2017, long-term debt (excluding current portion) was $0.03 million compared with $0.04 million as of Dec 31, 2016.
Guidance
Maxwell expects total revenue in the range of $34–$37 million in the second quarter of 2017. Adjusted gross margin is projected to be 23%, while adjusted operating expenses are anticipated in $12.6–$13 million band.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted down by 43.8% due to these changes.
Maxwell Technologies, Inc. Price and Consensus
Maxwell Technologies, Inc. Price and Consensus | Maxwell Technologies, Inc. Quote
VGM Scores
At this time, the stock has an average Growth Score of 'C', while Momentum is lagging a bit with a 'D'. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is solely suitable for growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #4 (Sell). We are looking for a below average return from the stock in the next few months.