Despite reporting higher-than-expected revenue, shares of wireless charging company Energous (WATT -1.21%) 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.
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.
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.