Shares of Romeo Power (RMO) were down sharply on Tuesday morning after the company reported second-quarter revenue that fell far short of Wall Street's estimate. As of 10:30 a.m. EDT, Romeo Power's shares were down about 19.6% from Monday's closing price.
Romeo Power reported its second-quarter results after the U.S. markets closed on Monday, and they weren't what Wall Street had expected. The company said that it lost $28.7 million, or $0.22 per share, on revenue of $926,000. Wall Street analysts polled by Thomson Reuters had expected a loss of $0.16 per share on revenue of $2.37 million, on average. That's why the stock is down today.
But during the company's earnings call, chief financial officer Kerry Shiba said that the revenue shortfall was a matter of timing. The company has been working to ramp-up production of its modular battery packs for electric-heavy vehicles, but it only secured a long-term supply of battery cells last week. (Romeo Power hasn't named its supplier.)
Shiba said that investors should expect the company to hit its rather broad prior-guidance range for full year revenue of $18 million to $40 million. But, he said, investors should now expect much of that revenue to come in the fourth quarter.
At least one analyst is maintaining his upbeat rating on Romeo Power's shares, though he did trim his bank's price target. In a note on Tuesday morning, BTIG analyst Gregory Lewis cut his price target to $12 from $15, while maintaining a buy rating and noting that the company will need a "strong finish" to hit its full-year guidance range.