Enovix Stock Is Surging Wednesday: What's Going On?

Enovix Corp ENVX shares are trading higher Wednesday after the company reported better-than-expected financial results and issued strong guidance. 

What Happened: Enovix reported third-quarter revenue of $200,000, which beat the consensus estimate of $120,000, according to Benzinga Pro. The company reported an adjusted loss of 19 cents per share, which beat estimates for a loss of 23 cents per share. 

Enovix said it commenced FAT of Gen2 equipment on schedule in August and expects to receive the first equipment at Fab2 in November.

The company ended the quarter with $371.3 million in cash, equivalents and short-term investments. 

"Our focus is clear: Give OEMs a path to the best-performing battery in the world through our patented architecture and materials agnostic strategy. By executing against our plan, we believe Enovix will become a scale supplier with multi-billions of dollars in annual revenue and industry-leading margins," the company said. 

Enovix expects fourth-quarter revenue to be between $3 million and $4 million versus estimates of $530,000. The company reduced its full-year 2023 operational cash use forecast from $120 million to $110 million and lowered its capital expenditures forecast from $70 million to $65 million. 

"We remain on track to move to high volume production in Malaysia in 2024 and deliver an industry-leading battery that enables our customers to launch compelling new products," Enovix said.

What Else: Enovix also announced late Tuesday that its IoT and Wearable cell exceeded the requirements of "a global wearable apparel company" and outperformed all competitive cells tested by Polaris Battery Labs.

"Polaris Labs was engaged recently by a Tier-1 wearable company to assess advanced performing cell options for their next generation product," said Doug Morris, president of Polaris Battery Labs.

"The Enovix cells met the customer's performance specifications, including cycle life and storage testing, and have shown the highest energy density among the cells evaluated."

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ENVX Price Action: Enovix shares were up 15.7% at $11.85 at the time of publication, according to Benzinga Pro.

Photo: Dean Simone from Pixabay.