Advanced Battery Tech (ABAT) Reports Mixed Results, Shares Off 9% AH

Posted by Tate Dwinnell | # |
09:33:33 pm on November 9, 2009

Advanced Battery Tech (ABAT) reported mixed results after the bell today and traders aren’t all that thrilled.  The stock has taking a beating since the August high and it’s getting hit again after hours, down about 9%.  The company reported an EPS number of .08/share which missed analyst estimates of .09/share and was flat from the year ago quarter despite a 40% increase in revenues. 

I still like this company longer term and this pull back off a disappointing earnings report may just offer a nice longer term entry point.  It will be interesting to see how the purchase of Wuxi ZQ pans out which is a play on the exploding popularity of electric bicycles in China.  The CEO commented on the acquisition:

“Following our acquisition of Wuxi ZQ in May 2009, we are excited to see positive momentum in the electric vehicle business continue in the third quarter, which helped to augment sales by signing new production contracts and expanding the international scope of our operations during the quarter. As we continue to integrate the operations of Wuxi ZQ into those of Advanced Battery, we are focused on expanding production capacities and enhancing R&D capabilities in an attempt to realize the synergies of ABAT and assure the Company of a leading position within the battery technology and vehicle production industry.”

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