Why Microvast Stock Is Moving Higher Today

Microvast Holdings Inc MVST shares are trading higher Tuesday after the company reported better-than-expected quarterly results.

What Happened: Microvast said second-quarter revenue increased 16.4% year-over-year to $74.95 million, which beat the consensus estimate of $64.19 million, according to Benzinga Pro. The company reported a quarterly loss of 2 cents per share, which beat analyst estimates for a loss of 9 cents per share.

Microvast ended the quarter with a backlog of $675.9 million, up 541.9% year-over-year. Microvast noted that year-over-year growth was driven by its continued production ramp for commercial vehicle customers in Europe and Asia Pacific.

The lithium-ion battery company ended the quarter with $195.8 million in cash, equivalents, restricted cash and short-term investments. 

"We are incredibly pleased to have begun shipping qualified 53.5Ah cells from our 2GWh Huzhou, China facility during the second quarter. With Huzhou now in the ramp-up phase, our execution focus for the remainder of the year is to bring Clarksville into trial production in Q4," said Yang Wu, founder, chairman, president and CEO of Microvast. 

CFO Craig Webster added the company expects "further upticks" in its backlog through the end of the year, driven by continued growth in orders. 

Microvast expects third-quarter revenue to be in the range of $72 million to $80 million. Full-year revenue is expected to be between $348 million and $368 million.

The company said trial production in its Clarksville, Tennessee facility remains on track for the fourth quarter. 

See Also: Novo Nordisk Stock Is Shooting Higher Today - Here's Why

MVST Price Action: Microvast shares were up 7.63% at $2.69 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Microvast.