Shares of XL Fleet (XL 7.86%) soared today, up by 11% as of 2:45 p.m. EDT, after the company reported first-quarter earnings. XL Fleet also announced an acquisition intended to bolster its charging infrastructure offerings.
Revenue in the first quarter was $675,000, which missed the consensus estimate of $970,000. That resulted in net income of $61.9 million, or $0.42 per share. However, the profit was primarily attributable to an accounting adjustment related to the change in fair value of warrant liability, as XL Fleet redeemed all of its outstanding warrants during the quarter. The company, which provides automotive electrification services for commercial fleet operators, reported an operating loss of $10 million.
"As we anticipated, the first quarter was challenging, with OEM delays continuing to impact the entirety of the automotive supply chain," CEO Dimitri Kazarinoff said in a statement. "While near-term uncertainty remains in place, we continue to position our company for accelerated growth, adding key leadership and scaling our organization to meet the increasing demand for vehicle electrification."
XL Fleet has acquired World Energy Efficiency Services for $16 million in cash and stock. The deal is designed to help XL Fleet expand its electric vehicle charging infrastructure services. The total price tag included $8 million in cash and $7 million worth of stock, with another $1 million to be paid out if World Energy Efficiency Services can hit a revenue target for 2021.
The company did not provide specific financial guidance due to ongoing uncertainties related to supply chain challenges.