Tecogen Q2 revenue misses estimates on lower chiller, cogeneration sales

Overview

• US clean energy products maker's Q2 revenue fell 21% yr/yr, missing analyst expectations

• Net loss for Q2 widened, driven by decreased gross profit and higher operating expenses

• Service revenue for Q2 rose 10% yr/yr, supported by acquired maintenance contracts

Outlook

• Tecogen expects Q3 product revenue to be higher than Q1 and Q2

• Company says service revenue is currently 10% higher than the same period last yr

• Tecogen cites increased engagement with large data centers as a potential growth driver

Result Drivers

• PRODUCTS REVENUE DECLINE - Co said Q2 revenue drop was due to decreased chiller and cogeneration sales

• HIGHER OPERATING EXPENSES - Co attributed increased net loss to higher payroll, benefits, depreciation, stock-based compensation and business insurance

• SERVICE REVENUE GROWTH - Q2 service revenue rose 10% yr/yr, driven by acquired Aegis maintenance contracts and growth in existing contracts

Company press release: ID:nACS6R4Yta

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components equipment peer group is "buy"

• Wall Street's median 12-month price target for Tecogen Inc is $9.00, about 121.7% above its August 11 closing price of $4.06

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)