Shares of Microvast Holdings, Inc. (NASDAQ:MVST) are falling Tuesday after the lithium ion battery company reported mixed third-quarter earnings.
- MVST is taking a hit from negative sentiment. Stay ahead of the curve here.
What To Know: Microvast’s adjusted earnings per share missed analyst estimates of 5 cents, instead coming in at 4 cents. The company brought in $123.29 million in sales, beating the estimate of $120.02 million and setting a new quarterly record.
The stock appears to be moving lower on the earnings miss, last down about 8%, according to Benzinga Pro.
For its 2025 outlook, Microvast affirmed its initial target revenue growth of 18% to 25% year-over-year and revenue guidance of $450 million to $475 million. The company also updated its gross margin outlook for full-year 2025 from 32% to a target range of 32% to 35%.
“While we booked a GAAP net loss of $1.5 million, we also delivered a positive adjusted EBITDA of $21.9 million, demonstrating the growing demand for our innovative battery solutions and the tangible results of our focus on profitability and operational excellence,” said Yang Wu, Microvast's CEO.
The company expects to finish installation and commissioning of production equipment for the Huzhou Phase 3.2 expansion by year-end with initial production to follow. Microvast said it will also maintain focus on attracting new customers and broadening its presence in new market segments.
MVST Analysis: Microvast’s stock is trading significantly above its 200-day moving average of $3.01, approximately 50.4% higher, which typically indicates a longer-term bullish sentiment. However, the relative strength index (RSI) sits at 49.46, signaling a neutral position that may suggest a lack of momentum in either direction. This neutral RSI, combined with the recent price drop, could indicate a potential consolidation phase ahead.
Support for Microvast is currently identified at $4.32, which aligns closely with the 50-day moving average, providing a critical level for traders to watch. If the stock fails to hold this support, it could open the door for further declines, potentially testing lower levels. On the upside, without a defined resistance level, the psychological barrier of $5.00 and the recent 52-week high of $7.12 may serve as key targets for any recovery.
MVST Price Action: Microvast shares were down 8.63% at $4.55 at the time of publication on Tuesday, trading within its 52-week range of $0.17 to $7.12, according to Benzinga Pro.
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