UQM Technologies

UQM Tech's long-term opportunity remains intact, says H.C. Wainwright


UQM Technologies (NYSEMKT:UQM), a developer of alternative energy technologies, had its near-term estimates lowered at H.C.Wainwright in the wake of releasing its second-quarter earnings results, but the brokerage said the near term results are not as relevant as the opportunity that lies ahead.

“Management’s comments regarding a general slowness in the domestic EV market related to their offerings leads us to believe that our projections for the remainder of FY2015 may be too optimistic,” analyst Amit Dayal wrote in a research note emailed to clients today.

The brokerage lowered its revenue projections for the fiscal third quarter and fiscal fourth quarter to $1.13 million and $1.64 million from $2.5 million and $3.2 million previously.

H.C.W said its EPS projections for fiscal third quarter and fiscal fourth quarter are now ($0.03) and ($0.03) compared to ($0.01) and ($0.01), respectively.

UQM yesterday reported second-quarter revenue fell to $1.1 million from $2.0 year-over-year, and net loss widened to $2.0 million, or $0.05 per common share, from a loss of $0.4 million, or $0.01 per common share.

”Despite the slowdown in the domestic market due to lower fuel prices and the cyclicality of our order flow by fleets, we made significant strategic progress on a number of fronts, including the recent announcement of a long-term supply agreement,” Eric R. Ridenour, UQM Technologies’ chief executive officer, said in the company’s release. “Our progress in China with several different partners is moving as planned and could result in significant sales as early as calendar year 2015.”

H.C.W. said however that UQM’s long-term opportunity remains intact. “We believe UQM’s near-term results are less relevant in the context of the overall opportunity in front of it,” Dayal wrote.

Dayal said UQM should be fairly valued at $3.50 per share.

UQM shares have lost 45 percent so far this year and were trading at $1.18, up 6.3 percent, at 2:32 p.m. in New York.

Quick facts: UQM Technologies

Price: $1.71

Market: NYSE
Market Cap: $96.45 m

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