Higher-Than-Expected Expenses Lead To EPS of -$0.42 For A123 Systems

A123 Systems, Inc.

reported in-line 3Q10 revenue of $26.2MM, but higher-than-expected operating expenses led to EPS of -$0.42 (vs. consensus of -$0.30), Deutsche Bank reports. “The co also lowered FY2010 rev guidance to $100MM from $120MM, citing customer launch delays,” Deutsche Bank writes. “Near-term earnings noise and minor adjusts to revenue growth timing do not impact our outlook for the company and we'd be buyers on weakness.” Deutsche Bank said that it believes the company is on the verge of meaningful contract signings that will support 2012 rev in the $600MM range, adding, “We maintain Buy rating on valuation.” A123 Systems currently trades at $9.94.