ASPEN AEROGELS Reports Record-Breaking Q2 Financial Results for FY 2023
August 24, 2023
🌥️Earnings Overview
ASPEN AEROGELS ($NYSE:ASPN) announced its financial results for the second quarter of fiscal year 2023 on June 30, 2023. The total revenue for the quarter came to USD 48.2 million, a 5.5% rise from the same period of the previous year. Net income for the quarter was at -15.4 million, showing a significant improvement compared to the -24.0 million recorded in the same quarter of the prior year.
Share Price
On Wednesday, ASPEN AEROGELS reported record-breaking financial results for their second quarter of Fiscal Year 2023. The company’s stock opened at $7.9, however it closed the day down by a significant 9.2% at $7.4 from its prior closing price of 8.2. This marked the lowest close for the company in the past three months as investors reacted to the quarterly news. The company noted that their strong performance was driven by increasing demand for their cost-effective, high-performance aerogel insulation products, as well as increases in research and development spending.
Despite impressive financial results, investors were not as optimistic due to growing external pressures such as rising raw material costs and increasing competition. Furthermore, ASPEN AEROGELS’ recently announced partnership with Procter & Gamble has yet to yield any tangible benefits, leading to doubts about the potential success of this venture. Overall, ASPEN AEROGELS’ record-breaking Q2 financial results for FY 2023 demonstrate the company’s ability to maintain a strong foothold in the aerogel insulation market, while also positioning it for future growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aspen Aerogels. More…
| Total Revenues | Net Income | Net Margin |
| 190.06 | -71.42 | -37.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aspen Aerogels. More…
| Operations | Investing | Financing |
| -93.87 | -241 | 307.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aspen Aerogels. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 617.07 | 197.1 | 5.99 |
Key Ratios Snapshot
Some of the financial key ratios for Aspen Aerogels are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.1% | – | -35.9% |
| FCF Margin | ROE | ROA |
| -176.2% | -10.0% | -6.9% |
Analysis
GoodWhale conducted an analysis on the wellbeing of ASPEN AEROGELS. The star chart showed that ASPEN AEROGELS has a health score of 4/10 with regard to its cashflows and debt, which suggests that it is likely to be able to pay off its debt and fund future operations. This indicates that the company is classified as a ‘cheetah’ type of company, which is characterised by having achieved high revenue or earnings growth but is considered less stable due to lower profitability. This suggests that investors who are looking for companies that are experiencing rapid growth, but are willing to take on a degree of risk, may be interested in ASPEN AEROGELS. The company is strong in terms of medium asset and growth, but weak in terms of dividend and profitability. As such, it may be suitable for investors who are willing to accept a higher risk than average in order to potentially reap higher rewards. More…
Peers
Its main competitors are Goodtech ASA, LifeSafe Holdings PLC, and Jiangsu Jingxue Insulation Technology Co Ltd.
– Goodtech ASA ($LTS:0ELH)
Goodtech ASA is a Norwegian engineering and technology company. The company provides products and services within the areas of energy, industry, and infrastructure. Goodtech ASA has a market cap of 211.8M as of 2022 and a Return on Equity of -3.23%.
– LifeSafe Holdings PLC ($LSE:LIFS)
LifeSafe Holdings PLC is a provider of health and safety products and services. The company has a market cap of 8.62M as of 2022 and a return on equity of 252.02%. LifeSafe Holdings PLC offers a wide range of products and services to help businesses and individuals protect themselves and their employees from health and safety risks. The company’s products and services include health and safety training, risk assessments, and products to help businesses and individuals comply with health and safety regulations.
– Jiangsu Jingxue Insulation Technology Co Ltd ($SZSE:301010)
Jiangsu Jingxue Insulation Technology Co Ltd is a Chinese company that manufactures insulation products. The company has a market cap of 2.23B as of 2022 and a Return on Equity of 5.98%. The company’s products are used in a variety of industries, including construction, automotive, and electronics.
Summary
ASPEN AEROGELS reported a 5.5% increase in total revenue for the second quarter of fiscal year 2023, reaching USD 48.2 million. However, their net income was still a loss of -15.4 million, although it was much lower than the -24.0 million reported in the same quarter of the previous year. This news caused the stock price to drop on the same day. Investors should consider evaluating ASPEN AEROGEL’s financials and prospects further before making any investment decision, as the company still faces a negative net income despite the increase in revenue.
