Eos Energy Guides Full-Year Revenue to Low End After Preliminary Q3 Print
EOSE is trading near its 52-week low of $1.72 (5.2% above the low).
Summary
Eos pre-announced Q3 revenue of $82M-$83M, up 19%-21% sequentially, on a 23% shipment increase as its second Thorn Hill line ramped to 17% of total battery output. The problem is the outlook: full-year revenue is now expected in the lower half of the $300M-$350M range, which was already cut from $300M-$400M in August. With $208M-$209M booked through September, that implies just $91M-$117M in Q4 — a step down from the current run rate. Gross margin remains deeply negative at roughly (55)%-(53)%, though the company logged its eighth straight quarter of improvement and expects further gains from volume, utilization, footprint consolidation and material costs. Shares slipped 0.8% on the news, a muted reaction for a name that has already been repriced. The $87M DOE loan draw disclosed in September and the Cerberus/Hudson Bay resale shelf keep dilution and liquidity in focus alongside the margin path.
At the time of this announcement, EOSE was trading at $1.81 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $659.1M. The 52-week trading range was $1.72 to $19.86. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.