Flux Power Q2 2024 Results: Revenue Beat, but Outlook Slashed

Flux Power Holdings Inc. reported Q2 2024 revenue of $18 million, beating estimates by 3%, but missed EPS expectations with a -$0.05 result. Analysts have downgraded forecasts and slashed the earnings outlook, expecting a full-year 2024 loss of $0.44 per share.

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Flux Power Q2 2024 Results: Revenue Beat, but Outlook Slashed

Flux Power Q2 2024 Results: Revenue Beat, but Outlook Slashed

Flux Power Holdings Inc. (NASDAQ: FLUX) released its Q2 2024 earnings results on Thursday, May 9th, reporting revenue of $18 million. While this beat analysts' estimates by 3%, the company still missed expectations on earnings per share (EPS). Flux Power reported an EPS of -$0.05, better than the consensus estimate of -$0.09 but still representing a negative earnings surprise of 45.45%.

Why this matters: The downgraded forecasts and slashed earnings outlook for Flux Power reflect the broader challenges faced by companies in the clean energy sector, which are critical to achieving global climate goals. As investors reassess their expectations for these companies, it may impact the flow of capital into the sector and ultimately affect the pace of the energy transition.

Despite the revenue beat, analysts have downgraded their forecasts for Flux Power and slashed the earnings outlook. They now expect the company to report a loss of $0.44 per share for the full year 2024. Flux Power's stock has an average rating of Buy based on 6 analyst ratings issued over the past year. The average 12-month price target is $7.67, with a high of $10.00 and a low of $6.00, implying a potential upside of 116.98% from the current price.

Flux Power, through its subsidiary Flux Power Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in North America. The Vista, California-based company has seen insider selling activity outpace buying over the past three months, with $26.216 million in stock sold by insiders. Institutions hold 37.96% of Flux Power shares, with top holders including Vanguard Group Inc. at 3.21% and Park Edge Advisors LLC at 0.51%.

The Q2 2024 results mark a challenging period for Flux Power, as the company strives to achieve profitability amid an uncertain economic environment. While the revenue beat provides a glimmer of optimism, the downgraded forecasts and slashed earnings outlook underscore the obstacles Flux Power faces in the near term. As the company navigates these headwinds, investors will be closely watching its progress in expanding its customer base, controlling costs, and executing on its growth strategy in the lithium-ion energy storage market.

Key Takeaways

  • Flux Power's Q2 2024 revenue beats estimates at $18 million.
  • EPS of -$0.05 misses expectations, representing a 45.45% negative surprise.
  • Analysts downgrade forecasts, expecting a full-year 2024 loss of $0.44 per share.
  • Flux Power's stock has an average rating of Buy with a 12-month price target of $7.67.
  • Institutions hold 37.96% of Flux Power shares, with Vanguard Group as top holder.