Ocean Power Technologies Inc rises amid market context
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2024
0mins
Should l Buy OPTT?
Source: Yahoo Finance
Ocean Power Technologies Inc (OPTT) saw a price increase of 7.44% in pre-market trading, as the stock crossed above its 20-day SMA. This movement occurs amid a mixed market environment, with the Nasdaq-100 up 0.14% and the S&P 500 down 0.01%.
The rise in OPTT's stock price is attributed to sector rotation, as investors are shifting their focus towards renewable energy stocks, despite the slight decline in the broader market. This trend suggests a growing interest in companies involved in sustainable technologies, which may be benefiting from recent policy discussions around green energy initiatives.
As the market continues to evolve, Ocean Power Technologies Inc may find itself well-positioned to capitalize on these trends, especially if it can leverage its innovative technologies in the renewable energy sector.
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Analyst Views on OPTT
Wall Street analysts forecast OPTT stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 0.330
Low
1.50
Averages
1.50
High
1.50
Current: 0.330
Low
1.50
Averages
1.50
High
1.50
About OPTT
Ocean Power Technologies, Inc. provides ocean data collection and reporting, marine power, offshore communications and domain awareness services products, and integrated solutions. The Company focuses on three major service areas: Data as a Service (DaaS), which includes data collected by its Wave Adaptive Modular Vessel (WAM-V) autonomous vehicles or its PowerBuoy product lines; Robotics as a Service (RaaS), which provides a lower cost subscription model for its customers to access use of its WAM-Vs, and Power as a Service (PaaS), which includes its PowerBuoy and subsea battery products. The Company's solutions are primarily suited to ocean and other offshore environments, and support generation of actionable intelligence on a standalone basis. The Company offers its products and services to a wide range of customers, including those in government and offshore energy, oil and gas, construction, science and research, wind power, and other industries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ocean Power Technologies Secures New Contract
- New Contract Secured: Ocean Power Technologies has signed a contract with a Nordic underwater research customer for a fully integrated WAM-V, marking a significant expansion into the Nordic market and potentially increasing the company's market share in the region.
- Growing Market Demand: SVP Jason Weed highlighted that demand is converting into backlog across multiple sectors, particularly in defense, security, and autonomous underwater surveys, indicating the broad appeal of the company's products.
- Rapid Delivery Capability: The contract requires immediate delivery, showcasing the company's ability to respond quickly to customer needs, thereby reinforcing its competitive position in the marine technology sector.
- Global Business Expansion: Ocean Power Technologies plans to continue delivering systems to customers in the U.S., Latin America, the Middle East, and other allied nations, reflecting the company's strategic focus on global market opportunities and future growth potential.
See More
OCEAN POWER TECHNOLOGIES RECEIVES ORDER FOR COMPLETE WAM-V SYSTEM FROM UNDERWATER RESEARCH CLIENT IN THE NORDICS
Ocean Power Technologies: The company has secured an order for a fully integrated WAM-V (Wave Adaptive Modular Vessel) designed for underwater research.
Customer Base: This order is specifically for a customer located in the Nordics, indicating a focus on advanced marine research capabilities in that region.
See More
OPTT Earnings Report: Record Backlog Amid Losses
- Record Backlog: OPTT's backlog reached a record $19.9 million, reflecting a 165% year-over-year increase, indicating strong engagement with government and commercial customers globally, despite ongoing losses, showcasing resilience in market demand.
- Revenue and Loss Comparison: The company reported revenue of $0.5 million for the quarter, down from $0.8 million in the same period last year, primarily due to timing impacts from a US federal government shutdown, resulting in a net loss of $11.4 million, highlighting significant financial pressure.
- Significant Increase in Operating Expenses: Operating expenses surged to $8.4 million for the quarter, driven by higher non-cash stock-based compensation and increased headcount, reflecting the cost challenges faced by the company as it expands its operations.
- Increased Cash Flow Pressure: As of January 31, 2026, OPTT had $7.2 million in cash and equivalents, with net cash used in operating activities reaching $19.9 million, indicating urgent cash management needs that could impact future investment capabilities.
See More
Multiple Companies Set to Report Earnings
- Lululemon Earnings Forecast: Lululemon athletica is expected to report an EPS of $4.77 for the quarter ending January 31, 2026, reflecting a 22.31% decrease year-over-year, indicating increased competitive pressure despite consistently beating expectations over the past year.
- DocuSign Growth: DocuSign anticipates an EPS of $0.34, representing a 21.43% increase compared to the same quarter last year, and has beaten expectations every quarter in the past year, highlighting its strong growth potential in the internet software sector.
- HealthEquity Performance: HealthEquity is projected to report an EPS of $0.70, a 27.27% increase year-over-year, and has consistently exceeded expectations in the past year, demonstrating its ongoing growth capability in the medical services industry.
- NextNav Earnings Outlook: NextNav expects an EPS of -$0.13, showing a 48.00% year-over-year improvement, indicating a trend of recovery in the technology services sector despite still reporting negative earnings.
See More
Ocean Power Technologies Set to Announce Q3 Earnings
- Earnings Announcement Schedule: Ocean Power Technologies (OPTT) is set to release its Q3 earnings on March 17 before market open, with consensus EPS estimate at -$0.04 and revenue estimate at $1.89 million, indicating a cautious market outlook on the company's financial performance.
- Historical Performance Review: Over the past year, OPTT has not beaten EPS estimates at all, while it has exceeded revenue estimates 100% of the time, demonstrating stability in revenue but highlighting the need for improvement in profitability to boost investor confidence.
- Market Analysis Dynamics: According to Seeking Alpha's Quant Rating, Ocean Power Technologies has shown a lackluster performance in the market; despite exceeding revenue expectations, the ongoing weakness in profitability may impact its stock price performance.
- Industry Comparison: Compared to strong buy stocks like Micron and Babcock & Wilcox, Ocean Power Technologies lags behind, indicating that the company needs to adopt more aggressive strategies to enhance its market position in a competitive environment.
See More
Ocean Power Technologies Q3 Financial Results
- Revenue Decline: Ocean Power Technologies estimates Q3 FY26 revenue between $400,000 and $600,000, a significant drop from $800,000 in the same period last year, indicating challenges in market demand.
- Widening Net Loss: The anticipated net loss of approximately $11.3 to $11.5 million marks a substantial increase from $6.7 million in the prior year, reflecting ongoing pressure on cost control and profitability.
- Cash Flow Usage: Estimated cash used in operating activities is expected to be less than $20 million, compared to $14.6 million in the prior-year period, indicating ongoing challenges in financial management despite a reduction.
- Performance Miss: Ocean Power Technologies reported a GAAP EPS of -$0.06, missing the expected -$0.02, while revenue also fell short of projections, highlighting difficulties in achieving financial targets.
See More
Ocean Power Technologies Secures New Contract
- New Contract Secured: Ocean Power Technologies has signed a contract with a Nordic underwater research customer for a fully integrated WAM-V, marking a significant expansion into the Nordic market and potentially increasing the company's market share in the region.
- Growing Market Demand: SVP Jason Weed highlighted that demand is converting into backlog across multiple sectors, particularly in defense, security, and autonomous underwater surveys, indicating the broad appeal of the company's products.
- Rapid Delivery Capability: The contract requires immediate delivery, showcasing the company's ability to respond quickly to customer needs, thereby reinforcing its competitive position in the marine technology sector.
- Global Business Expansion: Ocean Power Technologies plans to continue delivering systems to customers in the U.S., Latin America, the Middle East, and other allied nations, reflecting the company's strategic focus on global market opportunities and future growth potential.
See More
OCEAN POWER TECHNOLOGIES RECEIVES ORDER FOR COMPLETE WAM-V SYSTEM FROM UNDERWATER RESEARCH CLIENT IN THE NORDICS
Ocean Power Technologies: The company has secured an order for a fully integrated WAM-V (Wave Adaptive Modular Vessel) designed for underwater research.
Customer Base: This order is specifically for a customer located in the Nordics, indicating a focus on advanced marine research capabilities in that region.
See More
OPTT Earnings Report: Record Backlog Amid Losses
- Record Backlog: OPTT's backlog reached a record $19.9 million, reflecting a 165% year-over-year increase, indicating strong engagement with government and commercial customers globally, despite ongoing losses, showcasing resilience in market demand.
- Revenue and Loss Comparison: The company reported revenue of $0.5 million for the quarter, down from $0.8 million in the same period last year, primarily due to timing impacts from a US federal government shutdown, resulting in a net loss of $11.4 million, highlighting significant financial pressure.
- Significant Increase in Operating Expenses: Operating expenses surged to $8.4 million for the quarter, driven by higher non-cash stock-based compensation and increased headcount, reflecting the cost challenges faced by the company as it expands its operations.
- Increased Cash Flow Pressure: As of January 31, 2026, OPTT had $7.2 million in cash and equivalents, with net cash used in operating activities reaching $19.9 million, indicating urgent cash management needs that could impact future investment capabilities.
See More
Multiple Companies Set to Report Earnings
- Lululemon Earnings Forecast: Lululemon athletica is expected to report an EPS of $4.77 for the quarter ending January 31, 2026, reflecting a 22.31% decrease year-over-year, indicating increased competitive pressure despite consistently beating expectations over the past year.
- DocuSign Growth: DocuSign anticipates an EPS of $0.34, representing a 21.43% increase compared to the same quarter last year, and has beaten expectations every quarter in the past year, highlighting its strong growth potential in the internet software sector.
- HealthEquity Performance: HealthEquity is projected to report an EPS of $0.70, a 27.27% increase year-over-year, and has consistently exceeded expectations in the past year, demonstrating its ongoing growth capability in the medical services industry.
- NextNav Earnings Outlook: NextNav expects an EPS of -$0.13, showing a 48.00% year-over-year improvement, indicating a trend of recovery in the technology services sector despite still reporting negative earnings.
See More
Ocean Power Technologies Set to Announce Q3 Earnings
- Earnings Announcement Schedule: Ocean Power Technologies (OPTT) is set to release its Q3 earnings on March 17 before market open, with consensus EPS estimate at -$0.04 and revenue estimate at $1.89 million, indicating a cautious market outlook on the company's financial performance.
- Historical Performance Review: Over the past year, OPTT has not beaten EPS estimates at all, while it has exceeded revenue estimates 100% of the time, demonstrating stability in revenue but highlighting the need for improvement in profitability to boost investor confidence.
- Market Analysis Dynamics: According to Seeking Alpha's Quant Rating, Ocean Power Technologies has shown a lackluster performance in the market; despite exceeding revenue expectations, the ongoing weakness in profitability may impact its stock price performance.
- Industry Comparison: Compared to strong buy stocks like Micron and Babcock & Wilcox, Ocean Power Technologies lags behind, indicating that the company needs to adopt more aggressive strategies to enhance its market position in a competitive environment.
See More
Ocean Power Technologies Q3 Financial Results
- Revenue Decline: Ocean Power Technologies estimates Q3 FY26 revenue between $400,000 and $600,000, a significant drop from $800,000 in the same period last year, indicating challenges in market demand.
- Widening Net Loss: The anticipated net loss of approximately $11.3 to $11.5 million marks a substantial increase from $6.7 million in the prior year, reflecting ongoing pressure on cost control and profitability.
- Cash Flow Usage: Estimated cash used in operating activities is expected to be less than $20 million, compared to $14.6 million in the prior-year period, indicating ongoing challenges in financial management despite a reduction.
- Performance Miss: Ocean Power Technologies reported a GAAP EPS of -$0.06, missing the expected -$0.02, while revenue also fell short of projections, highlighting difficulties in achieving financial targets.
See More
