Why Microvast (MVST) Shares Are Exploding Higher

Microvast Holdings Inc MVST shares are trading higher by 31.18% to $1.72 Wednesday morning after the company reported better-than-expected first-quarter sales results.

What Happened?

Microvast reported quarterly losses of 10 cents per share which met the analyst consensus estimate.

The company also reported quarterly sales of $46.97 million which beat the analyst consensus estimate of $38.78 million by 21%. This sales figure represents a 28% increase over sales of $36.67 million in the same period last year.

What Else?

The company says it experienced a net loss of $29.6 million, compared to net loss of $43.8 million in the first-quarter 2022. Meanwhile, Microvast saw a non-GAAP adjusted net loss of $11.7 million, compared to non-GAAP adjusted net loss of $29.1 million in the first-quarter 2022.

The company's backlog as of March 31, 2023 was $486.7 million, representing growth of 302.9% compared to $120.8 million in backlog as of March 31, 2022 and sequential growth of 18.6% compared to $410.5 million in backlog at December 31, 2022.

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"In the first quarter, we delivered stronger than anticipated year-over-year revenue growth, led by the initial production ramp up of several of our commercial vehicle customers in Europe" said Yang Wu, Microvast's Founder, Chairman, President and Chief Executive Officer.

"We are very pleased to have completed our expansion and have begun trial production in Huzhou, China which adds 2GWh of production capacity for our new 53.5Ah cell," Wu stated.

Microvast designs, develops and manufactures lithium-ion battery solutions.

According to data from Benzinga Pro, MVST has a 52-week high of $5.76 and a 52-week low of $0.88.