Overview
Canada alternative fuel tech firm's Q1 revenue fell 69% yr/yr but beat analyst expectations
Q1 adjusted EBITDA loss narrowed and beat analyst estimates
Company warns of substantial doubt about ability to continue as a going concern
Outlook
Company says European LNG heavy-duty truck market expected to show strong annual growth
Westport says momentum increasing for high-pressure CNG storage solutions in North America
Company says substantial doubt exists about ability to continue as a going concern within one year
Result Drivers
HEAVY-DUTY OEM REVENUE LOSS - Revenue fell due to the end of the Heavy-Duty OEM segment's transitional service agreement with Cespira, resulting in no sales activity in the quarter
HIGH-PRESSURE CONTROLS GROWTH - High-Pressure Controls segment revenue rose 21% yr/yr, driven by higher service revenue for product testing to an OEM customer
CESPIRA JOINT VENTURE MOMENTUM - Cespira revenue grew 33% yr/yr, mainly due to higher volumes of HPDI systems sold and incremental deliveries to a second OEM for a truck trial
Company press release:
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$2.29 mln
$2.20 mln (4 Analysts)
Q1 Net Income
-$5.71 mln
Q1 Adjusted EBITDA
Beat
-$4.86 mln
-$5.90 mln (3 Analysts)
Q1 EBITDA
-$6.03 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
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