Tariff refunds - Revenue decrease was primarily driven by $2.7 mln in tariff refunds issued to a U.S. customer, recorded as a reduction to revenue.
Raw material costs - Higher raw material prices contributed to lower gross margin.
Production utilization - Lower production utilization reduced fixed cost absorption and weighed on margins.
Analyst coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell".
The average consensus recommendation for the electrical components and equipment peer group is "buy".
Wall Street's median 12-month price target for Microvast Holdings, Inc. is $5.50, about 507.1% above its August 7 closing price of $0.91.
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 22 three months ago.
Quarterly results
U.S. battery maker's Q2 revenue fell 4.5% year over year, impacted by tariff refunds to customers.
Adjusted EPS for Q2 was negative, as the company posted an adjusted net loss.
Gross margin declined due to higher raw material costs and lower production utilization.
MVST•
