Energous Corporation Q1 Earnings: Making Headway


Small cap wire-free charging stock Energous Corp (NASDAQ: WATT) reportedQ1 2017 earnings after the Wednesday market close. During the Q1, Energous Corporation recognized $575,368 in engineering services versus revenue of $136,364 for the same period last year. Energous Corporation said it expanded the number of active customer engagements to 68, and doubled the size of the Company’s customer-facing engineering organization to help accelerate the product integration cycle and support high demand. The net loss was $12,473,140versus a net loss of$10,796,542. The Company ended the quarter with $21.4 million in cash and cash equivalents and no debt.


The CEO commented:

“Energous is making substantial headway toward the successful commercialization of power at a distance. The number of customers in the final stages of WattUp integration is growing rapidly, and consumer availability of these products is expected later this year. Demand for our technology is very high, progress with strategic partners continues to advance, and we are moving quickly to complete formal testing of our Mid Field power-at-a-distance transmitter to secure regulatory certification. With commercialization in the near future, we firmly believe that we are well on our way to creating a meaningful wireless charging ecosystem that will disrupt the market.”


Earlier this week, we added Energous Corporation to our Elite Opportunity Pro (EOP)portfolio with our EOP newsletter saying:

The first time around, back in August of last year, we added WATT to our short-term trading list around $16 and change. The stock ran up to just over $20 per share, only to make a one eighty and stop us out three days later. Well, it all turned out for the better in the long run as shares of WATT are now trading down under $14 per share, but for how long is the question.

As a refresher for those who may not remember, Energous Corporation (WATT) Energous Corporation is the developer of WattUp(R)-an award-winning, wire-free charging technology that will transform the way consumers and industries charge and power electronic devices at home, in the office, in the car and beyond.


And:

Further, the Company is expected to continue to lose money into the foreseeable future, but like I said above if their technology gains adoption, and more importantly their potential growth starts to take hold, its current share price of just over $13 per share may end up being a gift.

A pure small cap play with a market cap of $279M, Energous has over $31M in cash on the books and no debt. There’s no question their next several quarters are going to chew away at that cash reserve though, unless of course their revenue and earnings projections start to take hold.


A technical chart for Energous Corporation shows shares recently slipping below a key support level towards another support level:

A long term performance chart shows Energous Corporation and potential small cap networking or power peer Acacia Communications (NASDAQ: ACIA) having a run up late last year while small cap Ultralife Corp (NASDAQ: ULBI) is heading back up to previous highs and EnSync Inc (NYSEMKT: ESNC) has underperformed:


Finally, here is a quick recap of small cap Energous Corporations recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimatespage going into the current earnings report:

6/29/20169/29/201612/30/20163/30/2017
EPS Est. -0.62 -0.43 -0.54 -0.6
EPS Actual -0.62 -0.57 -0.75 -0.57
Difference N/A -0.14 -0.21 0.03
Surprise % N/A -32.60% -38.90% 5.00%
EPS TrendCurrent Qtr. (Jun 2017)Next Qtr. (Sep 2017)Current Year (2017)Next Year (2018)
Current Estimate -0.56 -0.47 -2.14 0.03
7 Days Ago -0.56 -0.47 -2.14 0.03
30 Days Ago -0.56 -0.47 -2.14 0.03
60 Days Ago -0.59 -0.51 -2.14 0.04
90 Days Ago -0.35 -0.19 -1.28 0.7

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