Energous (NASDAQ:WATT) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Energous (NASDAQ:WATT) released its quarterly earnings data on Thursday. The industrial products company reported ($0.39) EPS for the quarter, beating analysts’ consensus estimates of ($0.42) by $0.03, FiscalAI reports. Energous had a negative return on equity of 28.67% and a negative net margin of 76.37%. The firm had revenue of $3.40 million for the quarter, compared to analysts’ expectations of $3.83 million.

Here are the key takeaways from Energous’ conference call:

• Energous reported third-quarter revenue of $3.4 million, up 10% sequentially and 167% year over year, and said it expects sequential growth to accelerate in the fourth quarter.
• Gross margin improved to 14% from 3% in the prior quarter, helped by July price increases. The company expects further improvement in Q4 and a return to historical hardware margins in the mid-30% range in the first half of 2027, though its long-term target is 40% or better.
• Management expects continued demand from its largest retail and e-commerce customers over the next 12 months, including a warehouse-club rollout planned to begin in early 2027. These are company expectations, and some deployments remain subject to customer plans and infrastructure requirements.
• The company expects a nearly completed proof of concept with a consumer-products manufacturer to move to deployment in Q1 2027, which could mark its first end-to-end solution conversion and create recurring software revenue. Energous also said active proof-of-concept programs through AWS are at a new high.
• Energous ended the quarter with $28.8 million in cash and said it has not used its ATM facility since Q1 and has no plans for further use this year. Year-to-date net loss narrowed 14% year over year, although the company remains unprofitable.

Energous Stock Performance

Shares of Energous stock traded down $0.25 on Thursday, reaching $8.74. The company had a trading volume of 135,627 shares, compared to its average volume of 316,592. The firm’s 50 day moving average price is $10.60 and its two-hundred day moving average price is $16.21. The firm has a market cap of $48.33 million, a PE ratio of -3.95 and a beta of 1.62. Energous has a 52-week low of $3.62 and a 52-week high of $36.98.

Analyst Ratings Changes

Several research analysts recently weighed in on the company. Weiss Ratings lowered Energous from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday. Wall Street Zen downgraded Energous from a “hold” rating to a “sell” rating in a research report on Saturday, October 17th. Finally, HC Wainwright initiated coverage on Energous in a research report on Tuesday, October 27th. They issued a “buy” rating and a $15.00 target price on the stock. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Energous presently has a consensus rating of “Hold” and a consensus target price of $15.00.

Energous Company Profile

Energous Corporation develops wireless power-at-a-distance technology and related semiconductor solutions. Its WattUp platform is designed to transmit radio frequency (RF) energy wirelessly to compatible devices, reducing or eliminating the need for traditional charging cables and charging pads. The company’s products include wireless power transmitters, receivers, reference designs and software intended for integration into connected devices and commercial systems. Its technology is aimed at applications across the Internet of Things, consumer electronics, healthcare, industrial equipment, retail and logistics, including sensors, wearables, asset-tracking devices and other low-power electronics.