Aspen (ASPN) Provides Preliminary Revenue Results & Guidance
Aspen Aerogels, Inc. ASPN provided preliminary revenue results for the fourth quarter and 2023, a preliminary 2024 revenue outlook and the initial shipments through its supplemental aerogel supply for its Energy Industrial business.
For fourth-quarter 2023, ASPN generated revenues of $84 million, up 38% quarter over quarter. Segment-wise, PyroThin thermal barrier revenues grew 61% quarter over quarter to $53 million. Energy Industrial revenues of $31 million were also up 11% quarter over quarter.
In the fourth quarter of 2023, the company successfully delivered Energy Industrial products to customers through its supplemental supply. Meanwhile, the company expects positive adjusted EBITDA but a net loss for the quarter.
For 2023, it generated revenues of $238 million, up 32% from 2022. Segment-wise, PyroThin thermal barrier revenues grew 98% year-over-year to $110 million. Energy Industrial revenues of $128 million were also up 3% year over year.
Don Young, Aspen's president and CEO, stated, "We are proud of the results that the team delivered in 2023 by effectively doubling our revenues in two years, a goal that we've been striving for since early 2021. Our profitability profile is also vastly improved as we focus on driving to our gross margin and adjusted EBITDA margin targets of 35% and 25%, respectively."
For 2024, the company expects revenues of $350 million with upside potential as EV production accelerates, resulting in more than 47% year-over-year growth.
The company’s customers are facing challenges with launching and scaling new EV nameplates. Navigating this uncertainty, ASPN is continuing to optimize its cost structure, maximize the potential of the Energy Industrial business, broaden its EV customer base, indulge in right-time capital expenditures and identify further operating efficiencies.
Investors, please note that Aspen's preliminary 2023 results do not represent a comprehensive statement of its financial results for the fourth quarter and 2023 and remain subject to the completion of its financial closing procedures and internal reviews. Thus, actual results for the fourth quarter and full year may vary materially from these preliminary estimates. Aspen plans to release the fourth quarter of 2023 results on Feb 12, after market close.
Image Source: Zacks Investment Research
ASPN, which currently carries a Zacks Rank #2 (Buy), has gained 65.4% in the past three months compared with the Zacks Building Products - Miscellaneous industry’s 23% growth. Earnings estimates for 2024 indicates a year-over-year rise of 84.2%.
Other Key Picks
Some other top-ranked stocks in the Zacks Construction sector are:
Martin Marietta Materials, Inc. MLM sports a Zacks Rank #1 (Strong Buy) at present. It has a trailing four-quarter earnings surprise of 37.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MLM’s 2024 sales and earnings per share suggests growth of 9.2% and 13.8%, respectively, from the year-ago period’s levels.
Eagle Materials Inc. EXP currently carries a Zacks Rank #2. EXP’s earnings surprise in the last four quarters was 5.4%, on average.
Also, fiscal 2024 earnings estimates have remained stable at $15.52 per share over the past 60 days. Earnings for fiscal 2024 are expected to grow 9.6% year over year.
CEMEX, S.A.B. de C.V. CX presently carries a Zacks Rank #2.
In the past seven days, CEMEX’s earnings estimates have increased to 93 cents per share from 90 cents, reflecting 38.8% year-over-year growth.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cemex S.A.B. de C.V. (CX) : Free Stock Analysis Report
Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report
Eagle Materials Inc (EXP) : Free Stock Analysis Report
Aspen Aerogels, Inc. (ASPN) : Free Stock Analysis Report
