Maxwell Misses Estimate - Analyst Blog
April 29 2011 - 1:16PM
Zacks
Energy storage and power delivery products maker,
Maxwell Technologies Inc. (MXWL) reported first
quarter 2011 adjusted earnings of 1 cent per share, missing the
Zacks Consensus Estimate of 5 cents. However results comfortably
beat the year-ago quarterly loss per share of 5 cents.
Operational Performance
Maxwell Technologies’ top line in the first quarter improved
32.7% from the year-ago quarter, reporting revenue of $35.3
million. Revenues in the quarter were in line with the Zacks
Consensus Estimate of $35 million.
BOOSTCAP Ultracapacitor revenue was $21.4 million, up 55% from
$13.8 million for the same period last year. Revenue growth for
ultracapacitor was primarily driven by energy storage solutions for
wind turbine blade pitch systems and hybrid and electric transit
vehicle drive systems.
Further, increasing contributions from automotive stop-start
idle elimination systems and various backup power applications also
helped the ultracapacitor sales.
Revenue from high voltage capacitor and microelectronics
products was $13.9 million, up 8% from the year-ago quarter.
Driven by this strong top line growth and ongoing cost reduction
and efficiency improvements, the company posted improved operating
results compared to last year. Net income for the first quarter
2011 was $0.2 million compared with a net loss of $1.2 million in
the year-ago quarter.
Financial Condition
Maxwell Technologies’ reported cash and cash equivalents of
$33.1 million compared to $39.8 million at fiscal-end 2010.
Long-term debt decreased to $2.3 million in the reported quarter
from $12.6 million at fiscal-end 2010.
Outlook
Maxwell Technologies is a leading manufacturer of
ultracapacitors, high-voltage capacitors and microelectronics
products. The company displayed consistent growth in its quarterly
top line in the recent past.
Looking ahead, the strong demand for the company’s products
related to the utility infrastructure, renewable energy, public
transportation, and space programs seems to be constant. Also its
key end-markets appear to benefit from government stimulus programs
as well as more stringent automotive emissions legislation.
However, downside risks include the rate of penetration for
ultracapacitor technology into broader markets, a higher cost
structure for ultracapacitor production, R&D overheads and
earnings dilutive equity issuances.
Maxwell Technologies presently retains a short-term Zacks #3
Rank (Hold), which supports our long-term Neutral recommendation on
the stock. In the near-term we would advise investors to focus on
the Zacks #2 Rank (short-term Buy rating) peers like AVX
Corp. (AVX) and OSI Systems Inc.
(OSIS).
AVX CORP (AVX): Free Stock Analysis Report
MAXWELL TECH (MXWL): Free Stock Analysis Report
OSI SYSTEMS INC (OSIS): Free Stock Analysis Report
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