A123 Systems (AONE) Misses, Reporting Another Healthy Loss; Is 2011 The Year?

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05:13:09 pm on August 10, 2010

A123 Systems (AONE) is disappointing investors again after the bell today.  The company reported another sizable loss and missed analyst expectations on both EPS and revenue.  The company reported an EPS loss of .33 vs the analyst estimate of .27 on revenues of $22.6 million vs the estimate of $25.5 million.  While revenues did increase 15% over the year ago quarter, this is a company that is still a LONG way from profitability as costs continue to rise and any kind of big revenue surge remains elusive.  It’s going to be awhile before investors see a big pay off in this stock.

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As CEO’s do best, David Vieau highlighted the achievements during the quarter:

– AES recently placed an order for multiple projects totaling 44 megawatts, which is A123’s largest grid order to date.

– recently selected as the sole development partner by a major auto manufacturer for a new electric vehicle program.

– making strong progress in the rapidly emerging Chinese market: our SAIC joint venture is now operational, our overall pipeline of opportunities is expanding, and we signed a letter of intent with an additional Chinese auto maker for a hybrid car battery system.

– will enter volume production for Fisker & Navistar within a few quarters and the company expects accelerated growth in 2011

Shares of AONE are off about 5% in after hours trading but have shown signs of life in recent weeks, getting above resistance of the 50 day moving average.  That is now new support around the $9 level which it may need to test in the coming weeks especially if selling picks up tomorrow.

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