Dallas, Texas 10/31/2013 (Financialstrend) – The diversified electronics manufacturer Maxwell Technologies Inc. (NASDAQ:MXWL) reported 3Q results on October 24. Post the results announcement, the stock posted a 4% rally. The company has a market cap of $234 million at current valuations. It reported earnings per share of $0.23 and brought in revenue of $51.2 million. Both the earnings per share and revenue were well above the expectations set by analyst prior to the results announcement. The revenue reported was 17% more in comparison to 3Q12. It was also announced on the call that its long serving Chief executive officer David Schramm would be retiring on December 30. He also indicated that he would be signing off from his role of director on the board. He has nominated his deputy, Chief Operating officer John Warwick as interim CEO till a full time replacement is found by the board.
The building materials supplier has painted a cautious outlook for the last three months of the year. It has set the cat among the pigeons by forecasting a close to 30% dip in revenue in comparison to 4Q12. It is interesting to note that analysts are looking at a more manageable 2% dip in revenue during the last three months of the year. The uncertainty with respect to revenue is focused around the potential demand for “ultra capacitor which goes into the making of diesel-electric hybrid buses”. The company considers China as a major market for its capacitor. The company feels that its sales are going to come down since China government is promoting electric buses at the cost of diesel electric buses.
As of 9:15 ET on October 20, the stock was trading at $8.12 per share up 0.74% from its previous day close. In the past month the stock had shed close to 10.3% of its value due to fears of China not renewing subsidy for diesel-electric buses.