Electric bus maker GreenPower Motor (GreenPower Motor Stock Quote, Charts, News, Analysts, Financials TSXV:GPV) reported quarterly earnings on Tuesday, coming in with record revenue up 67 per cent year-over-year to $7.7 million. Reviewing the quarter was Roth Capital Partners analyst Craig Irwin, who delivered a company note to clients on Wednesday where he reiterated a “Buy” rating on the stock. Irwin said GreenPower is ramping up nicely in its supply agreement with last-mile delivery company Workhorse.
Vancouver-based GreenPower, which designs, builds and distributes all-electric medium and heavy-duty vehicles, reported its second quarter fiscal 2023 financials on Tuesday for the period ended September 30. Along with the record topline, the company posted a loss per common share of $0.15. (All figures in US dollars except where noted otherwise.)
The company said it delivered 57 vehicles over the quarter, including production of 100 EV Star Cab and Chassis (C&C) vehicles to Workhorse, all-electric school buses for a pilot project in West Virginia and closed on the acquisition of Lion Truck Body in July, with almost $600,000 in revenue for the fiscal Q2 coming from the pickup.
“The acquisition of Lion Truck Body was a major accomplishment this quarter for GreenPower. Lion Truck Body is a tremendous truck body supplier and will be a great incubator for compelling EV vehicle bodies,” said GreenPower President Brendan Riley in a press release.
“GreenPower has already started taking orders of its zero-emissions, all-electric vehicles for various cutting-edge bodies, for lightweight box trucks with liftgates, service vehicles and refrigerated vehicles,” he said.
Looking at the quarterly results, Irwin said the revenue of $7.7 million was ahead of estimates, where Roth had forecasted $5.0 million and the consensus estimate was at $6.7 million. Meanwhile, the negative $0.15 per share in earnings was greater than Irwin had expected at negative $0.08 but a little better than the Street’s call at negative $0.16 per share.
Irwin noted that GreenPower expects to deliver 1,500 units as part of its supply contract with Workhorse, with 200 more expected in the coming months and leading to relatively stable month-to-month activity over the contract’s lifetime.
The analyst also pointed to the rising availability of federal and state-level funding, where the company secured 85 vouchers through California’s Hybrid and Zero-Emission Truck and Bus Incentive Project, with management being optimistic on US EPA vouchers, as well.
“GreenPower reported F2Q23 revenue ahead with moderately higher frictional costs as management positions the company for an expected upsurge in deliveries. Deliveries under the C&C supply agreement with WKHS made a strong start and position GP for a consistent revenue base over the next several quarters. Strong CA-HVIP awards plus an expected share of the 2,353 EVSB EPA vouchers funded by the Biden Infrastructure Plan should supplement activity,” Irwin said.
With his maintained “Buy” rating, Irwin also reiterated a $13.00 target price, which at the time of publication represented a projected one-year return of 392 per cent.