Shares of electric vehicle charging company Wallbox saw an uptick as the need for cost controls becomes vital amidst a slowdown in EV adoption.
Financial Overview
In the fourth quarter of 2023, Wallbox reported a loss of €11.1 million ($12 million) before interest, taxes, depreciation, and amortization, despite sales reaching $46.8 million. This figure outperformed the expected loss of $14 million from sales of $50.6 million, according to FactSet data.
Market Response
Pre-market trading saw shares rise by 5.7% to $1.68 each, while S&P 500 and Nasdaq Composite futures experienced slight declines of 0.4% and 0.5% respectively.
CEO Statement
CEO Enric Asuncion highlighted the challenges faced in 2023, "The EV adoption curve is in the process of crossing the chasm, which combined with higher interest rates and increased channel inventory, drove variability in our forecasts and results."
Cost-Cutting Measures
To navigate the evolving market landscape, Wallbox is implementing cost-cutting initiatives. Asuncion expressed confidence in the company's ability to lead in competitive markets.
Financial Outlook
With a cash balance of approximately $115.3 million at year-end, Wallbox forecasts a cash use of around $61 million in 2024.
Analysts' Perspective
Out of eight analysts, 63% rate Wallbox shares as Buy, surpassing the average Buy-rating ratio for S&P 500 stocks. The average analyst price target for Wallbox stock is estimated at around $3.40 per share.
Conference Call
Management will conduct a conference call at 8 a.m. Eastern time to discuss recent results, providing valuable insights into demand expectations for 2024.
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