Please ensure Javascript is enabled for purposes of website accessibility

Why Energous Corp Stock Is Getting Slammed Thursday

By Daniel Sparks - Aug 2, 2018 at 2:10PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

An analyst still rates Energous stock a buy, but his revised price target is significantly lower than it was.

What happened

Despite reporting higher-than-expected revenue, shares of wireless charging company Energous (WATT 6.32%) fell sharply on Thursday. Shares were down 15.8% at 1:45 p.m. EDT, but shares fell as much as 22.6% at one point during the trading day.

The stock's decline is likely primarily due to Roth Capital analyst William Gibson's lowered price for the stock. Though Gibson maintains a buy rating for Energous shares, his revised price target is significantly lower than it was.

A chalkboard sketch of a downward trending chart.

Image source: Getty Images.

So what

Energous, which developed a wireless charging technology called WattUp, reported second-quarter revenue of $205,773, higher than a consensus analyst estimate for revenue of $180,000. Energous' loss per share was $0.48, matching the consensus forecast for the key metric. 

With investors betting Energous can eventually deliver on its promise to roll out a range of products that can charge devices wirelessly, the company importantly executed on this front during the quarter by securing its first royalty partner and launching wireless-charging hearing aids through its customer Delight.

"Energous received orders and shipped chipsets to multiple customers in the quarter," said CEO Stephen Rizzone in the company's second-quarter update.

The second-quarter update prompted Roth Capital analyst William Gibson to lower his price target for Energous from $45.80 to $24.50, according to TheFly. The revised price target is notably still significantly higher than Energous' $11.07 price at the time of this writing.

Now what

Rizzone said Energous' pipeline "continues to be robust as we complete engineering milestones and make advances toward a WattUp enabled ecosystem."

After achieving certifications to ship in 54 additional countries (bringing total approved countries to 92) and increasing its patent count to 167 during the quarter, Energous' execution will be in the spotlight in the coming quarters.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Energous Corporation Stock Quote
Energous Corporation
$1.01 (6.32%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.