Yahoo Finance Orion's (OESX) Q4 Loss Narrower Than Expected, Gross Margin Up
Orion Energy Systems, Inc. OESX reported mixed results in fourth-quarter fiscal 2024 (ended Mar 31, 2024), wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same. That said, the top and bottom lines grew on a year-over-year basis.
The quarterly results reflect year-over-year performance growth across the company’s reportable segments on the back of increased project activity, geographic market reach and favorable pricing actions.
The company expects the improving business momentum to continue into fiscal 2025, attributable to the expected growth in LED lighting and EV charging solutions segments, supported by positive tailwinds from several macro themes.
Shares of OESX gained 8.5% during the trading session on Jun 6, post the announcement of its quarterly results.
Delving Deeper
The company reported an adjusted loss of 1 cent per share, which is narrower than the Zacks Consensus Estimate of a loss of 8 cents per share by 87.5%. In the last reported quarter, the company reported an adjusted loss of 8 cents per share.
Orion Energy Systems, Inc. Price, Consensus and EPS Surprise
Orion Energy Systems, Inc. price-consensus-eps-surprise-chart | Orion Energy Systems, Inc. Quote
Total revenues of $26.4 million missed the consensus mark of $28 million by 7.1%. On the other hand, the metric grew 22.1% from the prior-year quarter’s level. The uptick can be attributable to the solid contributions from the LED Lighting, EV Charging and Maintenance segments.
Revenues of LED Lighting, EV Charging and Maintenance segments grew year over year by 13.1%, 42.1% and 37.4% to $16.3 million, $4.9 million and $5.2 million, respectively.
Operating Highlights
During the fiscal fourth quarter, Orion’s gross profit increased notably by 43.5% to $6.8 million year over year on the back of sales mix changes, better-fixed cost absorption on increased revenues and improved pricing on select maintenance contracts. The gross margin also expanded 390 basis points (bps) to 25.8% compared with the year-ago reported value of 21.9%.
Adjusted EBITDA increased 2% to $0.4 million against the year-ago quarter’s value of $(1.6) million.
Total operating expenses declined to $5.0 million from $9.6 million reported a year ago.
Fiscal 2024 at a Glance
For the year, total revenues increased 17.1% year over year to $90.6 million. Net loss of 36 cents per share was narrower than the net loss of $1.08 per share reported a year ago.
Gross margin of 23.1% was up 50 bps year over year from 22.6%. Adjusted EBITDA was $(6.3) million compared with $(7.6) million reported in fiscal 2023.
Financials
At the fiscal fourth-quarter end, Orion had cash and cash equivalents of $5.2 million compared with $16 million at the fiscal 2023-end. There was no outstanding long-term debt (less current maturities) at the end of Mar 31, 2024, compared with $0.3 million at fiscal 2023-end. Total liquidity at the fiscal 2024-end was $15.3 million, down from $17.5 million at the fiscal 2023-end.
During fiscal 2024, net cash used in operating activities totaled $10.1 million, up from $2.3 million in the prior-year period.
Fiscal 2025 Outlook
Orion expects total revenues for fiscal 2025 to increase year over year in the band of 10-15%.
The Maintenance segment’s revenues are expected to contract by $4-$5 million.
Zacks Rank & Key Picks
Orion currently carries a Zacks Rank #3 (Hold).
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