Ceres Power (LON:CWR) Posts Earnings Results

Ceres Power (LON:CWR) issued its quarterly earnings results on Wednesday. The company reported GBX (8.58) earnings per share for the quarter, Digital Look Earnings reports. Ceres Power had a negative net margin of 145.65% and a negative return on equity of 39.26%.

Here are the key takeaways from Ceres Power’s conference call:

• Contracted revenue guidance of £45 million was reiterated, with roughly half delivered in the first half and management confident of achieving the balance in the second half.
• The partner pipeline has grown across the U.S., Asia and Europe, and Ceres remains confident of signing at least one new manufacturing licensee this year.
• Existing partners are progressing toward commercial scale: Doosan secured a roughly £60 million export order, Delta is developing a second Taiwan facility, and Weichai is targeting initial production soon with an ambition of 200 megawatts.
• Ceres reported progress in reducing its cost base and R&D spending following the launch of its Endura platform, while an oversubscribed equity raise of just over £100 million strengthened the balance sheet.
• Near-term revenue remains weighted toward license fees and engineering services, while royalties are not expected to become material until partners reach larger-scale production; management also noted that licensee signing and revenue-recognition timing can be unpredictable.

Ceres Power Stock Up 6.8%

Shares of LON CWR traded up GBX 29.48 during midday trading on Wednesday, hitting GBX 461.68. 31,004,713 shares of the stock traded hands, compared to its average volume of 9,037,259. The company has a debt-to-equity ratio of 2.24, a quick ratio of 12.18 and a current ratio of 3.27. Ceres Power has a one year low of GBX 119 and a one year high of GBX 872.50. The business has a 50 day moving average price of GBX 398.55 and a two-hundred day moving average price of GBX 474.93. The company has a market cap of £987.20 million, a PE ratio of -18.83 and a beta of 3.00.

Analyst Upgrades and Downgrades

CWR has been the subject of a number of recent analyst reports. Jefferies Financial Group reissued a “buy” rating and set a GBX 920 target price on shares of Ceres Power in a research report on Wednesday, June 10th. Berenberg Bank reaffirmed a “buy” rating and issued a GBX 950 price objective on shares of Ceres Power in a research note on Wednesday. Two research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of GBX 935.

Ceres Power Company Profile

Ceres is a leading developer of clean energy technology: fuel cells for power generation and electrolysers for green hydrogen. Its asset-light, licensing model has seen it establish partnerships with some of the world’s largest companies, such as Doosan, Delta, Denso, Shell, Weichai and Thermax. Ceres’ solid oxide technology supports greater electrification of our energy systems, including AI data centres, commercial and industrial applications, and produces green hydrogen at high efficiencies as a route to decarbonise emissions-intensive industries such as ammonia, steelmaking and electrofuels.