ANAHEIM, CA - Phoenix Motor Inc. (NASDAQ:PEV) has revised its first-quarter revenue forecast upward, expecting to report a record $9.4 million, surpassing the previously projected $8 million to $9 million range.
This figure marks a substantial increase from the $1.8 million revenue in the first quarter of 2023. The company also anticipates record gross profit and net income for the quarter.
The improved financial performance is attributed to the recent acquisition of Proterra's Transit business and battery lease portfolio, which expanded Phoenix Motor's offerings to include heavy-duty transit buses. This strategic move has contributed to the company's year-over-year growth.
However, the integration process has caused delays in the company's regulatory filings. Phoenix Motor's CEO, Denton Peng, stated, "Our team is working diligently to complete our quarterly filing with the SEC, and we anticipate the process will be completed soon."
In light of these delays, Phoenix Motor has rescheduled its Q1 2024 earnings call to August 15, 2024, at 4:30 p.m. ET. The call will discuss the financial results in detail, and interested parties can join via phone or webcast.
Phoenix Motor, known for its electric drive systems and electric vehicles, including transit, shuttle, and school buses and light-duty commercial EVs, continues to focus on its growth in the electric vehicle market.
The information provided in this article is based on a press release statement from Phoenix Motor Inc. The forward-looking statements in the release involve risks and uncertainties that could cause actual results to differ materially from the company's expectations. These statements have not been independently verified and are based on the company's current expectations as of the date of the release.
In other recent news, Phoenix Motor Inc. projected a record surge in Q2 revenue, anticipating figures between $14 million and $16 million. This significant increase is attributed to strategic initiatives, including the acquisition of Proterra's transit bus operations and the launch of new products.
The company also launched a new brand, PhoenixEV, merging with the recently acquired Proterra transit bus division. This move aims to strengthen PhoenixEV's position in the North American sustainable transportation market.
Moreover, Phoenix Motor received a Nasdaq compliance warning due to a delayed quarterly report. The company has been given 60 days to submit a plan to regain compliance.
Amid these developments, the company's CEO, Xiaofeng Denton Peng, was suspended due to allegations of a breach of fiduciary duty and unauthorized related-party transactions. As a result, former CFO J. Mark Hastings was appointed as interim CEO.
To bolster its governance, Phoenix Motor expanded its Board of Directors, adding Kristine Chen and Steven Li. This expansion is expected to bring fresh perspectives and diversified experience to the board. These recent developments highlight Phoenix Motor's commitment to corporate governance and strategic growth.
InvestingPro Insights
Phoenix Motor Inc. (NASDAQ:PEV) has shown a remarkable uptick in its first-quarter revenue forecast, but the broader financial context revealed by InvestingPro data suggests caution. With a market capitalization of $14.03 million and a concerning revenue decline of 27.9% in the last twelve months as of Q4 2023, the company's financial health warrants attention.
InvestingPro Tips indicate that Phoenix Motor may face challenges in sustaining its growth. The company has been burning through cash quickly and has short-term obligations that exceed its liquid assets. Moreover, it has not been profitable over the last twelve months, which is a critical factor for potential investors to consider. The financial metrics underscore the volatility in Phoenix Motor's stock price, with a 7.73% return over the last week but a significant drop of 46.84% over the last month.
The company's gross profit margin has been weak at -8.84%, and the negative price to book ratio of -2.9 indicates that the market values the company less than its net asset value. These figures, combined with a significant operating income margin deficit of -497.69%, raise questions about the sustainability of the company's recent revenue growth.
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