MVST Earnings Prediction
The chart below shows how MVST performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MVST sees a -0.71% change in stock price 10 days leading up to the earnings, and a -6.96% change 10 days following the report. On the earnings day itself, the stock moves by +3.26%. This data can give you a slight idea of what to expect for the next quarter's release.
MVST Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
113.39M
8.43%
11.83%
Gross Margin
36.62%
66.30%
10.47%
Operating Margin
0.66%
103.00%
-89.05%
Net Margin
-92.99%
295.37%
-811.48%
EPS
-0.33
-312.50%
-925.00%
No Data Available
MVST Earnings Analysis
Microvast Holdings Inc Corporation (MVST.O) Earnings Conference Call
Positive
Strong Revenue Growth: Record annual revenue of $380 million, a 24% increase year-over-year, indicating strong market demand.
Fourth Quarter Revenue Highlights: Fourth quarter revenue reached $113.4 million with a gross margin of 36.6%, showcasing operational efficiency and profitability improvements.
Gross Margin Improvement: Overall gross margin improved to 31.5% from 18.7% year-over-year, reflecting better cost management and operational leverage.
EBITDA Turnaround Success: Adjusted EBITDA of $8.6 million in Q4 2024, a significant turnaround from a negative $2.6 million in the prior year, demonstrating effective strategic execution.
Backlog Growth Indicating Demand: Backlog grew to $401.3 million, indicating strong future demand for Microvast's products, particularly in the EMEA region.
EMEA Revenue Surge: Achieved 123% year-over-year revenue growth in the EMEA market, driven by strong commercial traction in key countries like Italy and Germany.
Operating Cash Flow Improvement: Positive operating cash flow of $2.8 million in 2024, a significant improvement from a $75.3 million outflow in 2023, enhancing financial stability.
Projected Revenue Increase: Anticipated revenue growth of 18% to 25% in 2025, with a target range of $450 million to $475 million, reflecting confidence in market expansion.
Production Capacity Expansion: Successful expansion project in Huzhou expected to add 2 gigawatt hours of production capacity, aligning with increasing customer demand.
Innovation in Energy Storage: Continued focus on innovation with advancements in energy storage systems and battery technologies, positioning the company for future growth.
Negative
Increased Net Loss: GAAP net loss for Q4 2024 was $82.3 million, compared to a net loss of $24.6 million in Q4 2023, indicating a significant increase in losses year-over-year.
Net Loss Comparison: GAAP net loss for the full-year 2024 was $195.5 million, compared to a net loss of $106.4 million in 2023, reflecting worsening financial performance over the year.
Operating Expenses Increase: Operating expenses for the full year increased to $238.3 million from $165.9 million in 2023, primarily due to a non-cash impairment charge of $93.2 million, indicating financial strain.
Asia Pacific Revenue Decline: Revenue in the Asia Pacific region declined by 19% year-over-year, from $219.1 million in 2023 to $177.7 million in 2024, highlighting challenges in maintaining market share in that region.
Financial Stability Concerns: Despite achieving record annual revenue of $380 million, the company still faces substantial doubt regarding its ability to continue as a going concern due to liquidity constraints and recurring operating losses.
Challenges in APAC Market: The company experienced a difficult financing environment and increased competition in the APAC region, which could hinder future growth and profitability.
Market Repositioning Challenges: The strategic repositioning away from low-margin segments in China and India indicates a struggle to compete in those markets, which may affect overall revenue growth.
MVST FAQs
How does MVST typically perform around its earnings report dates?
Is Microvast Holdings Inc (MVST) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
MVST Earning Call Sentiment
Microvast Holdings, Inc. (MVST) Q4 2024 Earnings Call Transcript
MVST.O
32.48%Positive
The earnings call highlights strong financial performance, including record revenue and improved gross margins, which are positive indicators. The strategic focus on high-demand markets and cost-cutting measures further enhances the outlook. Despite challenges like a difficult financing environment and increased competition, the company has managed to improve cash flow and maintain operational efficiency. The lack of a shareholder return plan is a minor drawback, but overall, the financial and strategic updates suggest a positive stock price movement.
