Advanced Battery (ABAT) Misses On EPS & Revenues

Advanced Battery Technologies (ABAT) reported their earnings during market hours today and missed on both EPS and revenues.  Excluding one time gains, the company earned just .03/share which missed the analyst estimate of .08/share and represents a 67% plunge over the year ago quarter.  Despite an increase in revenues due to the Wuxi Autocycle acquisition, the company still missed estimates there as well, reporting $13.8 million.  That’s a miss of nearly $2 million, but is a 17% increase over the year ago quarter.

The Wuxi Autocyle e-bike business now accounts for more than a quarter of ABAT’s business and provided $3.6 million in revenue.  Large capacity battery cells accounted for 27%, medium capacity 20%, small capacity 9% and miners lamp battery cells 17%.

CEO Zhiguo Fu, Chairman commented on the quarter:

“We are pleased with our results during the second quarter. During the quarter, we successfully completed the acquisition of Wuxi ZQ and began integrating their operations with those of Advanced Battery. We expanded assembly capacity in our Harbin facility and it became fully operational late in the second quarter of 2009.  ABAT is experiencing strong demand in both domestic and international markets for electric and hybrid electric vehicles as individuals and industries switch to alternate forms of transportation. Following the completion of our acquisition of Wuxi ZQ, ABAT now has the manufacturing capability to produce vehicles, batteries and many key vehicle parts, meaning Wuxi and ABAT can produce high quality vehicles with margins that are superior to its competition.”

After an initial bump up after the report today, the stock reversed and gave back the gains, finishing down about 5%.

I still like this company longer term, but would prefer to get into closer to 4, which is the 50 day moving average.  It’s a bit extended at these levels.

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