Aspen Aerogel on Thursday reported revenues of $30.1 million in the three months to June 2015, up 13 per cent on the same period last year. In spite of improving its financial performance, the developer and manufacturer of aerogel insulation underperformed stock market analysts’ expectations, with Canaccord Genuity on Friday lowering their price objective on its shares from $13.50 to $10.50.
Northborough, Massachusetts-based Aspen Aerogel reported revenues of $30.1 million in Q2 2015, reflecting growth of 13 percent on the same period last year.
The firm increased revenues in spite of lower demand in the Canada and Latin America. Don Young, President and CEO of Aspen Aerogels, said: “Strong demand from Asia and Europe more than offset the previously identified weakness in the Canadian oil sands and Latin American markets and highlighted the importance of the diversified sources of our revenue”. The firm also reported net losses of $2.7 million in the second quarter of this year, compared with losses of $42.1 million in Q2 2014.
Adjusted EBITDA for the second quarter of 2015 was $1.3 million, compared to $0.4 million in the second quarter of 2014.
The company upgraded its own outlook for the year. It said total revenue would range between $118 million and $122 million, an improvement on a prior forecast of $113 million to $117 million.
Young added: “Our second manufacturing plant remains on track to begin operations in late 2017, and we have narrowed our site selection to a single site in the southeastern part of the United States. We will announce the site location upon completion of site due diligence and final negotiations related to government incentives”.
For 2015, Adjusted EBITDA is now expected to range between $9.2 million and $10.6 million, a refinement on previous guidance of $9.0 million to $11.0 million Nonetheless, stock market analysts were disappointed. On Friday Canaccord Genuity cut its price target for Aspen’s shahres from $13.50 to $10.50. Zacks also recently downgraded its rating on the firm from a ‘buy’ to a ‘hold’.
Listed on the NYSE, Aspen Aerogel has a market capitalisation of $160.9 million. The firm’s two main products, Pyrogel and Cryogel, are used as thermal insulation by operators of refineries, petrochemical plants and other energy infrastructure.