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 -5.08% 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
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MVST Earning Call Sentiment
Microvast Holdings, Inc. (MVST) Q4 2024 Earnings Call Transcript
MVST.O
14.19%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.
