Advanced Battery Tech (ABAT) beat estimates after the bell today posting an EPS .04 cents better than analyst estimates at .11/share . Revenue for the quarter was $19.5 million, which compares to the estimate of $18.82 million. That’s nearly a doubling of revenues over the year ago quarter, but about in line with what they reported last quarter ($21.5 in revs). All in all, a nice a quarter from ABAT. It appears their electric bike business is really starting to take off which they acquired last year. In fact, it now contributes nearly half of revenues.
CEO Zhiguou Fu commented on the quarter: “The increase in the portion of our revenue attributable to medium and large capacity batteries and electric vehicles has been beneficial to our overall business. The margins that we are able to achieve in selling larger capacity batteries are significantly greater than the margins we achieve in selling smaller capacity batteries, due primarily to the relative amount of competition in the different markets. We also show significant progress in our newly acquired electric vehicle business, which generated more sales to domestic and overseas customers in the first quarter and enhanced our top-line and bottom-line growth.”
Shares of ABAT are up about 7% in after hours trading. There is now clear longer term support around the $3 level which shares hit last week and bounced off of today. With tomorrow’s move the stock will be up nearly 20% in just two days, but any pull back might offer a real nice long term entry point on this quality battery and electric bike play.