Shares of Ocean Energy Applied sciences, Inc. OPTT have declined 22.7% since reporting outcomes for the third quarter of fiscal 2025. This compares with the S&P 500 index’s 0.2% slip over the identical time-frame. Over the previous month, the inventory has misplaced 24% in contrast with the S&P 500’s 5.3% fall.
Earnings & Income Efficiency
For the third quarter ended Jan. 31, 2025, Ocean Energy reported revenues of $0.8 million, a pointy decline of 54% from $1.8 million within the year-ago interval. The corporate’s internet loss for the quarter widened to $6.7 million from $6.5 million a yr earlier. On a per-share foundation, the loss improved to 4 cents from 11 cents, aided by a big enhance in common shares excellent.
Working bills fell 29% yr over yr to $6.1 million, contributing to the diminished loss. For the 9 months ended Jan. 31, 2025, revenues rose 15% yr over yr to $4.5 million, whereas the web loss decreased 27% to $15.1 million from $20.8 million.
Ocean Energy Applied sciences, Inc. Value, Consensus and EPS Shock
Ocean Power Technologies, Inc. price-consensus-eps-surprise-chart | Ocean Energy Applied sciences, Inc. Quote
Different Key Enterprise Metrics
Ocean Energy reported a report backlog of $7.5 million on the finish of the third quarter of fiscal 2025, greater than double the $3.3 million reported a yr earlier. The rise was primarily pushed by $5 million in new buy orders from a Latin American companion, which included commitments for each Subsequent Era PowerBuoys and WAM-V Unmanned Floor Automobiles. Regardless of the sequential income decline, the trailing 12-month revenues rose 24% to $6.1 million from the prior-year interval.
The gross margin for the quarter was $197,000 in contrast with $813,000 a yr in the past, reflecting decrease gross sales quantity and probably adjustments within the gross sales combine. Money utilized in working actions was $3.7 million for the quarter and $14.6 million for the 9 months ended Jan. 31, 2025, a 41% enchancment from the $24.7 million utilized in the identical nine-month interval final yr. The corporate attributed this enchancment to its restructuring and streamlining initiatives.
Ocean Energy ended the quarter with $10.2 million in mixed money, restricted money and money equivalents, a considerable enhance from $3.3 million as of April 30, 2024.
Administration Commentary
CEO Philipp Stratmann emphasised Ocean Energy’s operational and industrial progress regardless of a difficult macro and political backdrop. He cited achievements resembling the corporate’s presence at NAVDEX 2025 in Abu Dhabi, profitable multi-day offshore testing of the WAM-V 22 in California, and continued momentum in Latin America.
Stratmann additionally highlighted a 59% year-over-year discount in money utilized in operations as a mirrored image of Ocean Energy’s strategic give attention to operational effectivity. Wanting ahead, he expressed confidence in changing backlog into revenues and advancing the corporate’s autonomous ocean safety and AI-powered maritime applied sciences.
Components Influencing the Headline Numbers
The year-over-year decline in revenues within the fiscal third quarter stemmed primarily from diminished lease exercise and fewer product shipments than the prior yr. The lower was partially offset by a rise in contracted backlog, which administration expects to transform to revenues in future durations. The corporate famous that geopolitical uncertainties, together with delays in decision-making throughout the current U.S. election cycle, slowed venture exercise throughout key sectors.
Working bills declined considerably, with administration attributing the drop to diminished exterior expenditure and decrease third-party spend. This lower was a direct results of restructuring efforts geared toward aligning prices with present income ranges.
Steerage
Ocean Energy indicated its intent to proceed executing its priorities, together with rising its presence in protection, safety and industrial maritime purposes, and rising its put in base of AI-capable autonomous methods.
Different Developments
Within the quarter, Ocean Energy actively pursued worldwide growth and industrial engagement. In February 2025, the corporate showcased its applied sciences at NAVDEX within the UAE by means of its unique regional distributor, Remah Worldwide Group. Reside demonstrations featured WAM-V autos built-in with underwater sensors and drones, in addition to the AI-enabled Merrows system.
In March 2025, Ocean Energy participated within the NDIA Pacific Operations Assist Staff convention to discover protection alternatives within the Pacific area. To assist its development in federal markets, the corporate added a devoted gross sales govt targeted on the Division of Homeland Safety and Division of Protection.
In December 2024, Ocean Energy introduced a strategic partnership in Latin America involving $5 million in orders for PowerBuoys and WAM-V models. These methods will assist hydrographic purposes and chronic maritime monitoring powered by photo voltaic, wind and wave power.
General, Ocean Energy’s fourth quarter underscored a transitional section marked by elevated contract momentum and improved value management, although near-term income volatility and ongoing losses stay key investor concerns.
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