Energous (NASDAQ:WATT) Announces Earnings Results, Beats Estimates By $0.03 EPS

Energous (NASDAQ:WATT) posted its quarterly earnings results on Thursday. The industrial products company reported ($0.39) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.42) by $0.03, FiscalAI reports. Energous had a negative net margin of 76.37% and a negative return on equity of 28.67%. The firm had revenue of $3.40 million for the quarter, compared to analyst estimates of $3.83 million.

Here are the key takeaways from Energous’ conference call:

• Energous reported third-quarter revenue of $3.4 million, up 10% sequentially and 167% year over year, and said it expects sequential growth to accelerate in the fourth quarter.
• Gross margin improved to 14% from 3% in the prior quarter, helped by July price increases. The company expects further improvement in Q4 and a return to historical hardware margins in the mid-30% range in the first half of 2027, though its long-term target is 40% or better.
• Management expects continued demand from its largest retail and e-commerce customers over the next 12 months, including a warehouse-club rollout planned to begin in early 2027. These are company expectations, and some deployments remain subject to customer plans and infrastructure requirements.
• The company expects a nearly completed proof of concept with a consumer-products manufacturer to move to deployment in Q1 2027, which could mark its first end-to-end solution conversion and create recurring software revenue. Energous also said active proof-of-concept programs through AWS are at a new high.
• Energous ended the quarter with $28.8 million in cash and said it has not used its ATM facility since Q1 and has no plans for further use this year. Year-to-date net loss narrowed 14% year over year, although the company remains unprofitable.

Energous Trading Down 2.8%

Energous stock traded down $0.25 during midday trading on Thursday, hitting $8.74. 135,627 shares of the stock were exchanged, compared to its average volume of 316,592. Energous has a fifty-two week low of $3.62 and a fifty-two week high of $36.98. The stock has a market capitalization of $48.33 million, a price-to-earnings ratio of -3.95 and a beta of 1.62. The stock’s 50-day simple moving average is $10.60 and its 200 day simple moving average is $16.21.

Analyst Upgrades and Downgrades

WATT has been the topic of a number of research reports. Weiss Ratings lowered shares of Energous from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Monday. Wall Street Zen cut Energous from a “hold” rating to a “sell” rating in a report on Saturday, October 17th. Finally, HC Wainwright assumed coverage on Energous in a report on Tuesday, October 27th. They set a “buy” rating and a $15.00 target price on the stock. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $15.00.

About Energous

Energous Corporation develops wireless power-at-a-distance technology and related semiconductor solutions. Its WattUp platform is designed to transmit radio frequency (RF) energy wirelessly to compatible devices, reducing or eliminating the need for traditional charging cables and charging pads. The company’s products include wireless power transmitters, receivers, reference designs and software intended for integration into connected devices and commercial systems. Its technology is aimed at applications across the Internet of Things, consumer electronics, healthcare, industrial equipment, retail and logistics, including sensors, wearables, asset-tracking devices and other low-power electronics.