Why Romeo Power Stock Is Sinking Today
Shares of Romeo Power (NYSE: RMO) were down sharply on Tuesday morning after the company reported second-quarter revenue that fell far short of Wall Street's estimate. As of 10:30 a.m. EDT, Romeo Power's shares were down about 19.6% from Monday's closing price.
Romeo Power reported its second-quarter results after the U.S. markets closed on Monday, and they weren't what Wall Street had expected. The company said that it lost $28.7 million, or $0.22 per share, on revenue of $926,000. Wall Street analysts polled by Thomson Reuters had expected a loss of $0.16 per share on revenue of $2.37 million, on average. That's why the stock is down today.
But during the company's earnings call, chief financial officer Kerry Shiba said that the revenue shortfall was a matter of timing. The company has been working to ramp-up production of its modular battery packs for electric-heavy vehicles, but it only secured a long-term supply of battery cells last week. (Romeo Power hasn't named its supplier.)
Source Fool.com
