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There wasn’t going to be too much of a surprise in the Energy
Conversion Devices (ENER) earnings report. The company has been
struggling for a few quarters and that was going to continue. The
company posted a record loss of .34/share on revenues of just $42.9
million. The revenue number missed analyst estimates of $56.4 million
by a wide margin and represents a more than 60% plunge over the year
ago quarter.
No word yet on guidance, but the CEO acknowledged that new construction and reroofing projects have been slow but is confident that the market will improve. He also addressed some new products coming to market.
“To expand our near-term addressable market beyond our traditional BIPV focus, we are developing product solutions for rooftop retrofit applications including our recently launched tilt solution. This product leverages the light-weight attributes of our core flexible laminates as well as our superior energy yield resulting in leading levelized cost of energy (LCOE) performance and attractive returns to customers worldwide. We are also working with project developers to pursue large-scale projects in our key markets.”
It will be interesting to see just how much of this poor quarter was already built into the stock. The stock is down 5% in premarket trading, but a close near positive territory probably indicates the worst is over for the stock. There is strong support around $10/share should the stock continue to fall in the coming days.
