On Wednesday, H.C. Wainwright maintained its Buy rating and $30.00 stock price target for Beam Global (NASDAQ:BEEM), despite the company reporting a year-over-year decline in revenues for the second quarter of 2024. Beam Global announced on August 13 that its 2Q24 revenues were $14.8 million, which represents a 16.9% decrease from the $17.8 million reported in the second quarter of 2023.
The firm highlighted that Beam's gross margins have improved, reaching $2.4 million or 15.9% of revenues, up from $1.5 million or 10.2% of revenues in the first quarter of 2024. The increase in gross margins is a positive sign amid the revenue decline.
Beam Global's operating expenses for the quarter totaled $7.1 million. This included $2.6 million in one-time expenses, which were broken down into several categories: a $1.8 million non-cash expense due to the change in fair value of contingent consideration following the Amiga acquisition, $0.3 million for operating expenses of Beam Europe, and $0.6 million in commission expenses.
The company's net loss for the quarter stood at $4.9 million, or $0.34 per share. Despite the loss, Beam Global finished the quarter with a solid financial position, having $8.7 million in cash and an untapped $100.0 million accounts receivable line of credit at its disposal.
The reiteration of the Buy rating and the $30 price target by H.C. Wainwright indicates confidence in Beam Global's long-term prospects, even as the company navigates through the current financial results.
In other recent news, Beam Global has experienced significant developments. The company announced that Peter Davidson, a member of its Board of Directors, has resigned for personal reasons. This change in the Board does not stem from disagreements with the company's operations, policies, or practices, and Beam Global has yet to name a successor for Mr. Davidson.
On the financial front, Beam Global reported record revenues of $14.6 million in the first quarter of 2024, a 12% increase primarily driven by higher federal sales. Despite this, the firm missed revenue consensus estimates due to weaker seasonal demand and challenges faced by its recently acquired Amiga business.
However, the firm's gross margin exceeded expectations due to improved manufacturing efficiencies. Following these developments, Needham has adjusted its projections for Beam Global, reducing the estimate for the number of EV ARC units expected to be sold and lowering the revenue forecast for 2024.
Furthermore, Beam Global has secured an order for its Beam AllCell™ energy storage solutions from a leading solar-powered Transport Refrigeration Units (TRUs) provider. This move aligns with industry trends towards sustainability and the growing opportunities presented by the shift towards transportation electrification. These are all recent developments for Beam Global.
InvestingPro Insights
As Beam Global (NASDAQ:BEEM) continues to navigate its financial landscape, real-time data from InvestingPro provides additional context to the company's performance and future potential. With a market capitalization of $84.07 million, Beam Global shows a significant revenue growth rate of 120.5% over the last twelve months as of Q1 2024. This is particularly noteworthy given the company's reported year-over-year decline in 2Q24 revenues, suggesting a robust rebound in other periods.
Despite the challenges highlighted in the earnings report, InvestingPro Tips indicate that Beam Global holds more cash than debt on its balance sheet, providing a cushion for operational flexibility. Moreover, the company's liquid assets exceed its short-term obligations, which is a positive sign for its financial health.
Yet, analysts are wary, as they do not anticipate the company will be profitable this year, and the stock has experienced a substantial 31.3% drop in price over the last six months. These insights suggest that while the company has strengths to build on, it also faces significant headwinds.
For readers looking to delve deeper into Beam Global's financials and future outlook, InvestingPro offers additional tips. There are a total of 12 InvestingPro Tips available, which can provide further guidance on the company's valuation, cash flow, and profitability metrics. To explore these in detail, interested investors can visit InvestingPro's dedicated page for Beam Global at https://www.investing.com/pro/BEEM.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.