Enovix (NASDAQ:ENVX) Issues Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Enovix (NASDAQ:ENVX) announced its earnings results on Thursday. The company reported ($0.15) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.20) by $0.05, FiscalAI reports. Enovix had a negative return on equity of 64.50% and a negative net margin of 473.89%. The company had revenue of $11.04 million for the quarter.

Here are the key takeaways from Enovix’s conference call:

• Q3 revenue was $11 million, up 38% year over year and 22% quarter over quarter, marking the company’s sixth consecutive quarter of year-over-year growth. Gross margin was 34.5%, which management attributed partly to a favorable mix of smart-eyewear, drone, and defense products.
• Enovix guided to $65 million–$85 million in 2027 revenue, with $37 million already in backlog—roughly half the midpoint of guidance. Management cited a 100,000-unit drone-battery order slated to ship in January 2027 and an initial order for its higher-silicon MX1 product.
• The defense pipeline reached $216 million and is largely drone-related, supported by demand for batteries made outside China; however, management emphasized that pipeline is not backlog. The company plans to invest $19 million to double Korean drone-battery capacity and said demand could outstrip its available supply.
• Although management expects to pass a key reliability test with its lead smartphone customer, it is prioritizing smart eyewear and other near-term opportunities over smartphone shipments. The company expects nominal, if any, smartphone revenue in 2027 and says renewed qualification work for its next-generation cell will take time.
• Enovix cut about 23% of open positions, projecting $8.5 million in annual savings, with additional savings expected from relocating its office. It also repurchased $128 million of debt face value for $81 million, while a warrant dividend is intended to help retire remaining 2028 notes and could result in shareholder dilution.

Enovix Price Performance

Shares of NASDAQ:ENVX traded down $0.72 during midday trading on Thursday, reaching $1.81. 20,554,050 shares of the company’s stock traded hands, compared to its average volume of 7,144,460. Enovix has a 1 year low of $1.79 and a 1 year high of $9.19. The company has a market cap of $397.86 million, a P/E ratio of -2.24 and a beta of 2.34. The company has a debt-to-equity ratio of 2.46, a quick ratio of 9.37 and a current ratio of 9.71. The company has a fifty day simple moving average of $2.85 and a two-hundred day simple moving average of $4.96.

Enovix shares are going to split on Friday, November 13th. The 5-4 split was recently announced. The newly issued shares will be payable to shareholders after the closing bell on Thursday, November 12th.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Canaccord Genuity Group decreased their price objective on shares of Enovix from $15.00 to $10.00 and set a “buy” rating for the company in a research report on Friday, August 14th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Enovix in a report on Friday, October 2nd. Cantor Fitzgerald reissued an “overweight” rating and set a $25.00 price objective on shares of Enovix in a report on Thursday, August 13th. TD Cowen raised Enovix to a “hold” rating in a research report on Monday, October 5th. Finally, Wall Street Zen downgraded Enovix from a “sell” rating to a “strong sell” rating in a research note on Saturday, October 31st. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, Enovix presently has a consensus rating of “Moderate Buy” and an average target price of $10.85.

Top Enovix Stories

Investors following ENVX have been watching these stories:

• Positive Sentiment: Enovix said it had $512.2 million in cash, cash equivalents, marketable securities and restricted cash at quarter-end, and retired $128 million face value of 2030 convertible notes for about $81.4 million. It also plans a $19 million South Korean facility expansion to double drone-battery capacity.
• Neutral Sentiment: Call-option trading was 24% above its typical volume, suggesting increased options activity but not establishing a clear direction for the stock.
• Negative Sentiment: Fourth-quarter revenue guidance of $9 million–$10 million is below the third quarter’s reported revenue, pointing to a near-term sequential slowdown.

Hedge Funds Weigh In On Enovix

A number of large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of Enovix during the second quarter worth about $100,054,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in Enovix during the 2nd quarter worth approximately $8,689,000. Bank of America Corp DE acquired a new position in shares of Enovix during the second quarter valued at approximately $8,356,000. Bank of New York Mellon Corp purchased a new position in shares of Enovix in the second quarter valued at approximately $3,551,000. Finally, Deutsche Bank AG acquired a new position in Enovix in the 2nd quarter valued at $3,343,000. 50.92% of the stock is currently owned by institutional investors and hedge funds.

About Enovix

Enovix Corporation develops lithium-ion batteries using a silicon-based anode and a proprietary three-dimensional cell architecture. Its design is intended to increase energy density while addressing safety and performance requirements in compact devices. The company’s batteries are designed for applications including smartphones, wearable devices, laptops, augmented- and virtual-reality products, and other portable electronics. Enovix also targets markets such as defense and industrial technology.