GreenPower Engine Inventory Remains Stable Despite Weak Fiscal Fourth Quarter Results
Green Power Motor Company (IS: GPV) (NASDAQ: generalist) is a manufacturer and distributor of all-electric buses. The company offers electric-powered transit buses deploying electric drive and battery technologies with a lightweight chassis and low-floor body.
Earnings continue to disappoint
The company recently reported earnings for its fourth quarter of fiscal 2022. Earnings per share came in at -$0.19, well below analysts’ consensus estimate of -$0.03. . Over the past nine quarters, GreenPower has missed estimates every time.
Additionally, sales were down 1.46% year over year, with revenue hitting $4.314 million from $4.378 million. It appears that the decline in revenue was primarily attributed to purchasing decisions that were put on hold while customers waited for federal funding.
Unfortunately, GreenPower’s gross profit was nearly halved, meaning the company was unable to maintain profitability despite relatively stable revenues. Indeed, the gross profit margin contracted from 26.7% to 13.8%. The stock opened about 2.4% lower today, but ended the day flat, recouping its losses.
Insider activity is bearish
When looking at insider activity, there doesn’t seem to be much insider trust. There were far more sells than buys, even when the price fell. That suggests insiders don’t think the stock is undervalued yet.
As a result, TipRanks’ Insider Confidence signal for GreenPower Motor is negative, which is below the neutral industry average.
Analysts have not issued a recommendation in the past three months. However, five-star analyst Tate Sullivan of Maxim Group placed a buy rating four months ago with a price target of $14 per share. The same can be said for 4.5 star analyst Craig Irwin of Roth Capital, who assigned a price target of $13 five months ago.
While these estimates are likely outdated, it’s worth mentioning that GreenPower Motor’s future prospects have mostly remained intact. Thus, an updated analyst forecast is likely to be even higher than the current share price, which has fallen significantly over the past four to five months.
GreenPower had a weak quarter as revenue fell slightly while earnings were worse than expected. As a result, insiders don’t seem confident enough to invest additional money in the company.