Shares of Microvast Holdings, Inc. (NASDAQ: MVST) tumbled 5.60% in after-hours trading on Monday, despite the company reporting record third-quarter revenue. The sharp decline came as the electric vehicle battery maker's earnings fell short of analyst expectations.
Microvast announced Q3 revenue of $123.3 million, marking a 21.6% increase year-over-year and beating the analyst consensus estimate of $120.018 million. However, the company reported adjusted earnings per share of $0.04, missing the FactSet estimate of $0.05. The bottom-line miss appears to be the primary driver behind the stock's after-hours plunge.
While Microvast showed improvements in several key metrics, including gross margin expansion to 37.6% from 33.2% a year ago, investors seemed focused on the earnings shortfall. The company also reported a GAAP net loss of $1.5 million for the quarter, compared to a net profit of $13.2 million in Q3 2024. This swing to a loss, despite revenue growth, may have further dampened investor sentiment.
Looking ahead, Microvast maintained its full-year 2025 revenue growth target of 18% to 25% and updated its gross margin outlook to a range of 32% to 35%. However, the market's immediate reaction suggests that investors were hoping for stronger earnings performance to justify the company's growth trajectory.
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