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Eos Energy (EOSE) Q4 Earnings Beat Estimates, Revenues Up Y/Y

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Eos Energy Enterprises (EOSE - Free Report) reported an adjusted loss of 16 cents per share in fourth-quarter 2023, which beat the Zacks Consensus Estimate of a loss of 22 cents per share. The company had reported a loss of 68 cents per share in the fourth quarter of 2022.

Eos transitioned its entire manufacturing capacity from Gen 2.3 to the new Eos Z3 Cube. Operational benefits associated with the Z3 battery design that provides improved power density along with lower unit costs from its simpler mechanical design have started aiding results.

The company reported net sales of $6.6 million in the reported quarter, which marked a 148% surge year over year as the company fully transitioned production to the Eos Z3Cube on its semi-automated manufacturing line. The top line missed the Zacks Consensus Estimate of $8 million.

The cost of sales amounted to $30.4 million in the quarter, down 1.3% from the year-ago quarter’s levels. EOSE reported a gross loss of $23.8 million compared with a gross loss of $28.1 million in the fourth quarter of 2022.

Eos Energy Enterprises, Inc. Price, Consensus and EPS Surprise

 

Eos Energy Enterprises, Inc. Price, Consensus and EPS Surprise

Eos Energy Enterprises, Inc. price-consensus-eps-surprise-chart | Eos Energy Enterprises, Inc. Quote

 

Selling, general and administrative expenses increased 7% year over year to $13.5 million. Research and development expenses were $5 million in the fourth quarter of 2023, 275% higher than $3.6 million in the year-ago quarter.
The company reported an operating loss of $42.2 million, narrower than the year-ago quarter’s loss of $48.6 million.

Cash Position

The company reported cash and cash equivalents of $69.5 million as of Dec 31, 2023, higher than $17.1 million as of Dec 31, 2022. The company used around $145 million of cash in operating activities in 2023 compared with a usage of $197 million in 2022.

2023 Results

The company reported a loss of $1.81 per share in 2023, narrower than the loss of $3.68 per share in 2022. The Zacks Consensus Estimate for 2023 was at a loss of $1.57 per share.  

Eos Energy’s revenues totaled $16.4 million for 2023, which was 8% lower than $17.9 million in the prior year. The top line missed the consensus estimate of $19 million.

Fiscal 2024 Outlook

In 2024, Eos Energy anticipates revenues to range from $60 million to $90 million with the commencement of initial commercial production on its state-of-the-art line 1 in the second quarter. Subsequently, the company intends to boost manufacturing volume throughout 2024 to align production with customer demands and the planned realization of its cost-out roadmap.

EOSE predicts a positive contribution margin (calculated as the sales price minus direct labor and direct materials, including the benefits of production tax credits) in the fourth quarter of 2024. This projection is based on the implementation of various cost-reduction measures throughout the year. The cost-out program is anticipated to yield initial benefits in late Q1 2024, with the majority of the advantages expected to be realized in Q4 2024 as the company scales up its production volume.

Price Performance

In the past year, EOS Energy’s shares have declined 43.5% against the industry’s 18.9% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank and Other Stocks to Consider

EOS Energy currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the Industrial Products sector are Cadre Holdings, Inc. (CDRE - Free Report) , Proto Labs, Inc. (PRLB - Free Report) and Applied Industrial Technologies (AIT - Free Report) . CDRE currently sports a Zacks Rank #1 (Strong Buy), and PRLB and AIT carry a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.15 per share. The consensus estimate for 2024 earnings has moved 5.5% north in the past 60 days and suggests year-over-year growth of 5.5%. The company has a trailing four-quarter average earnings surprise of 45.6%. CDRE shares have gained 66% in the past year.

The Zacks Consensus Estimate for Proto Labs’ 2024 earnings is pegged at $1.62 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days and suggests year-over-year growth of 1.9%. The company has a trailing four-quarter average earnings surprise of 42.2%. PRLB shares have gained 8% in the past year.

Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 32% in the past year.


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