ESS TECH Reports Second Quarter FY2023 Earnings Results on August 8th
August 15, 2023
🌥️Earnings Overview
On August 8, 2023, ESS TECH ($NYSE:GWH) reported its earnings results for the second quarter of FY2023, ending June 30, 2023. Revenue for the quarter increased to USD 2.8 million from USD 0.7 million reported in the same quarter of the prior year. Net income for the quarter, however, decreased to USD -22.9 million from the -15.6 million figure reported in the same quarter of the previous year.
Share Price
In reaction to the news, the ESS TECH stock opened at $1.7 and closed at $1.7, up 0.6% from its previous closing price of 1.7. The company reported an impressive earnings outlook for the coming financial quarters, providing investors with a positive outlook for the future of the company. The company’s strong performance in the 2nd quarter was mainly driven by increased sales in their core product lines as well as strategic cost management initiatives. The strong earnings results from ESS TECH have served to further bolster investor confidence in the company, with many expressing faith in their ability to continue to generate consistent returns.
ESS TECH’s Board of Directors has also been praised for their efforts in managing the company’s finances effectively. Going forward, the company is expected to continue to perform well and deliver further success in the years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ess Tech. More…
| Total Revenues | Net Income | Net Margin |
| 3.41 | -101.5 | -3015.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ess Tech. More…
| Operations | Investing | Financing |
| -84.62 | 4.1 | -0.83 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ess Tech. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 127.76 | 30.46 | 0.63 |
Key Ratios Snapshot
Some of the financial key ratios for Ess Tech are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -3165.0% |
| FCF Margin | ROE | ROA |
| -2752.5% | -62.8% | -52.8% |
Analysis
GoodWhale conducted an analysis of ESS TECH‘s fundamentals. Our Star Chart showed that ESS TECH was strong in assets and growth, but weak in dividends and profitability. Their health score was 6/10 for cashflows and debt, indicating that the company is likely to pay off debt and fund future operations. We classified ESS TECH as a ‘cheetah’ type of company, which means it achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors who are confident in their risk tolerance will likely find this type of company attractive. Those looking for stability as well as high returns might be more interested in companies with higher profitability. More…
Peers
The competition among battery manufacturers is heating up as the market for energy storage systems (ESS) continues to grow. ESS Tech Inc, a leading manufacturer of lithium-ion batteries, is facing stiff competition from Eos Energy Enterprises Inc, Shandong Sacred Sun Power Sources Co Ltd, and RedFlow Ltd. All four companies are vying for a share of the growing ESS market, which is expected to reach $13.5 billion by 2025.
– Eos Energy Enterprises Inc ($NASDAQ:EOSE)
Eos Energy Enterprises Inc is a US-based company that engages in the development, manufacture, and commercialization of zinc-air batteries for energy storage applications. The company has a market capitalization of $95.35 million as of 2022 and a return on equity of 414.19%. Eos was founded in 2008 and is headquartered in New Jersey.
– Shandong Sacred Sun Power Sources Co Ltd ($SZSE:002580)
Shandong Sacred Sun Power Sources Co Ltd is a leading manufacturer of solar power products in China. The company has a market cap of 5.41B as of 2022 and a return on equity of 2.79%. Sacred Sun Power Sources Co Ltd manufactures solar panels, solar cells, solar inverters, and other solar power products. The company has a strong presence in the Chinese solar power market and is one of the leading suppliers of solar power products in the country.
– RedFlow Ltd ($ASX:RFX)
RedFlow Ltd is a company that manufactures and sells red blood cells. The company has a market cap of 64.18M as of 2022 and a Return on Equity of -73.29%. RedFlow Ltd is a publicly traded company on the Australian Securities Exchange (ASX: RFL). The company was founded in 1996 and is headquartered in Brisbane, Australia.
Summary
ESS TECH has recently reported its Q2 2023 earnings, which saw a large increase in revenue from the same quarter last year. Despite this, the company reported a net income of -22.9 million, a decrease from the prior year. Investors may be wary of the current financial position of ESS TECH, as higher than expected revenue has not translated to profitability.
Nonetheless, investors can take some solace in the increased revenue and may feel they are buying at an attractive price compared to the prior year. With strategic investments and cost-cutting measures, the company could turn things around and provide investors with long-term gains.
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