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QuantumScape Corp QS shares are falling after the close Wednesday after the company reported fourth-quarter earnings below analyst estimates.
What Happened: QuantumScape reported a fourth-quarter net loss of 25 cents per share, which missed consensus estimates for a loss of 21 cents per share.
QuantumScape said it successfully incorporated several improvements, addressed a previously announced contamination issue, and rallied to meet its target of shipping 24-layer A0 cells to customers by year’s end.
“While specific customer testing protocols and results can’t be disclosed, we can report that generally, most cells have performed well on initial testing, including fast charge and early-cycle capacity retention; however, we must continue to improve cell reliability as we move from prototype to product,” the company said in a letter to shareholders.
For 2023, QuantumScape anticipates capital expenditures in a range of $100 million to $150 million. For comparison, the total 2022 capex was $158.8 million.
“This guidance reflects our efforts to preserve our commercialization goals while conserving cash and extending our runway given the macroeconomic environment, primarily by optimizing non-personnel resources as well as rebalancing personnel,” the company said.
As a result of cost reductions, QuantumScape now believes it has enough cash to last until the second half of 2025 versus previous expectations for a cash runway out to the end of 2024.
QuantumScape aims to transform energy storage with solid-state lithium-metal battery technology. The company’s batteries are designed to enable greater energy density, faster charging and enhanced safety to support the transition away from legacy energy sources toward a lower carbon future.
See Also: Why Twilio Shares Are Moving Higher After Hours
QS Price Action: QuantumScape shares are down 10.3% after hours at $10.50 at the time of publication, according to Benzinga Pro.
Photo: courtesy of QuantumScape.
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Image and article originally from www.benzinga.com. Read the original article here.