Energous (NASDAQ:WATT) Announces Earnings Results, Misses Estimates By $0.31 EPS

Energous (NASDAQ:WATT) announced its quarterly earnings data on Wednesday. The industrial products company reported ($0.53) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.22) by ($0.31), FiscalAI reports. The business had revenue of $3.09 million for the quarter, compared to analyst estimates of $3.40 million. Energous had a negative return on equity of 39.80% and a negative net margin of 0.80%.

Here are the key takeaways from Energous’ conference call:

• Revenue surged to approximately $3.1 million in Q2 and $6.2 million for the first half, up 217% and 368% year over year, respectively; trailing-12-month revenue surpassed $10 million.
• Second-quarter gross margin declined due to U.S. manufacturing retooling, component shortages, and absorbing higher costs to meet strategic-customer delivery commitments. Management characterized these pressures as temporary and reiterated a long-term goal of gross margins above 40%.
• Commercial deployments continued expanding, with a major retailer’s roughly 4,700-store rollout about 90% complete, a warehouse-club program expected to expand to approximately 550 locations next year, and a federal logistics proof of concept potentially scaling to hundreds of sites.
• The company reported a larger, higher-quality pipeline, including expanding Fortune 10 deployments, a completed national QSR proof of concept, and an active grocery-chain evaluation. Management said enterprise sales cycles have shortened to roughly six to nine months.
• FCC certification of the PowerBridge Pro+ enables U.S. commercial deployment of its integrated wireless-power and data-connectivity solution, which carries higher margins and includes recurring software revenue. Energous ended the quarter with $31.2 million in cash and said it does not plan to use its ATM facility this year.

Energous Price Performance

Shares of WATT stock traded down $1.68 during midday trading on Wednesday, reaching $16.98. 408,182 shares of the company traded hands, compared to its average volume of 383,917. The firm’s 50 day simple moving average is $20.35 and its two-hundred day simple moving average is $18.58. The firm has a market cap of $93.39 million, a PE ratio of -4.14 and a beta of 1.58. Energous has a 1-year low of $3.62 and a 1-year high of $36.98.

Insider Buying and Selling at Energous

In other news, CEO Mallorie Sara Burak purchased 1,867 shares of the stock in a transaction that occurred on Wednesday, May 27th. The shares were acquired at an average price of $26.47 per share, for a total transaction of $49,419.49. Following the acquisition, the chief executive officer directly owned 26,999 shares in the company, valued at approximately $714,663.53. The trade was a 7.43% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.16% of the stock is currently owned by corporate insiders.

Institutional Trading of Energous

An institutional investor recently raised its stake in Energous stock. Geode Capital Management LLC grew its position in Energous Corporation (NASDAQ:WATT) by 85.4% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 18,713 shares of the industrial products company’s stock after buying an additional 8,619 shares during the quarter. Geode Capital Management LLC owned 0.86% of Energous worth $75,000 at the end of the most recent quarter. 4.35% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings restated a “sell (e+)” rating on shares of Energous in a research report on Friday, July 24th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce”.

About Energous

Energous Corporation develops and commercializes radio frequency (RF)–based wireless charging technology designed to deliver power over the air to compatible devices. Its WattUp platform includes near‐field and far‐field transmitters that emit targeted RF energy and receiver modules that convert that energy into electrical power. The company’s solutions aim to eliminate the need for cables and charging pads by enabling contactless power delivery to a range of products, from wearables and IoT sensors to medical devices and consumer electronics.