Zoltek (ZOLT) Plunges AH On Revenue Miss, But CEO Remains Optimistic

Zoltek (ZOLT) has made a habit out of reporting disappointing earnings results and they did it again after the bell today.  While the company posted a bit narrower loss than what analysts expected (.01) vs analyst estimate of (.02), they missed significantly on the revenue side, posting $31 million vs the estimate for $43 million.  The CEO blamed the poor performance on the shift in production capacity of its biggest customer Vestas Wind, currency fluctuations and lower selling prices.

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While CEO Zsolt Rumy acknowledged disappointment that the company didn’t meet its goals for the year, he still believes the company will experience solid growth.

“While Zoltek’s sales are benefiting from new applications and existing markets are growing, our highest and most immediate potential is in the wind power generating application. We produce the significant majority of the high-performance commercial carbon fibers used in the superlong blades that power the most advanced wind turbines. A new generation of carbon fiber-enabled wind turbines is replacing the older generation technology that relied on shorter blades reinforced with glass fibers. For all these reasons, we are convinced that Zoltek is on the threshold of a new era of accelerated growth.”

Traders aren’t as optimistic as the CEO, sending shares down more than 12% in after hours trading.  That means shares will take out key support levels tomorrow and put the stock back into the base it’s been in all year.

One thought on “Zoltek (ZOLT) Plunges AH On Revenue Miss, But CEO Remains Optimistic”

  1. Rumy should change his name to RUIN me if U own ZOLT
    Nothing ever changes with this company……

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