China BAK Battery (NASDAQ:CBAT) Posts Quarterly Earnings Results, Misses Estimates By $0.05 EPS

China BAK Battery (NASDAQ:CBAT) announced its earnings results on Monday. The electronics maker reported ($0.08) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.05), FiscalAI reports. The company had revenue of $58.80 million for the quarter, compared to analyst estimates of $64.57 million. China BAK Battery had a negative return on equity of 5.50% and a negative net margin of 4.03%.

Here are the key takeaways from China BAK Battery’s conference call:

• Demand for new cells far outpaces supply: management commissioned a 2.3 GWh line for the 40135 in Dalian and added 3.0 GWh for the 32140 in Nanjing, with full ramp expected by early 2027.
• Top-line momentum and Hitrans turnaround: Q4 consolidated revenue rose 131.8% YoY to $58.8M, while the Hitrans raw-materials segment rebounded sharply (Q4 Hitrans +944.1% to $27.98M), and management forecasts record sales for 2026.
• Ramp-related margin pressure: aggressive capacity expansion and higher unit costs pushed Q4 gross margin down to 7.3% (FY 9.4% vs 23.7% prior year) and produced operating and net losses (Q4 operating loss $8.01M; FY net loss ~$19.8M).
• Strategic moves to support international growth: launched in-house battery pack assembly for LEV swapping (Spiro is a top-five customer), incorporated a Malaysian subsidiary to hedge export rebate cuts, and approved redomicile to the Cayman Islands.
• Potential investor confusion from inconsistent figures: management cited differing full-year revenue amounts during the call (roughly ~$100M and ~$195M), which warrants clarification.

China BAK Battery Stock Down 1.7%

Shares of CBAT opened at $0.80 on Monday. China BAK Battery has a 12 month low of $0.57 and a 12 month high of $1.25. The stock has a market cap of $71.01 million, a price-to-earnings ratio of -11.40 and a beta of 1.26. The company has a 50-day moving average price of $0.92 and a two-hundred day moving average price of $0.91. The company has a quick ratio of 0.54, a current ratio of 0.69 and a debt-to-equity ratio of 0.04.

Wall Street Analyst Weigh In

Separately, Weiss Ratings restated a “sell (d)” rating on shares of China BAK Battery in a report on Wednesday, January 21st. One analyst has rated the stock with a Sell rating, According to MarketBeat.com, the stock presently has a consensus rating of “Sell”.

Institutional Trading of China BAK Battery

A hedge fund recently raised its stake in China BAK Battery stock. Empowered Funds LLC boosted its stake in China BAK Battery, Inc. (NASDAQ:CBAT) by 8.7% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 355,536 shares of the electronics maker’s stock after acquiring an additional 28,411 shares during the quarter. Empowered Funds LLC owned 0.40% of China BAK Battery worth $283,000 as of its most recent SEC filing. 1.97% of the stock is currently owned by institutional investors.

China BAK Battery Company Profile

China BAK Battery Inc (NASDAQ: CBAT) is a China-based developer and manufacturer of rechargeable lithium-ion batteries and related power solutions. The company’s core product lines include small, medium and large format batteries, battery modules and pack assemblies designed for consumer electronics, electric vehicles, energy storage systems and other industrial applications. China BAK Battery offers polymer lithium-ion cells, prismatic and cylindrical cells, as well as integrated battery systems tailored to meet the performance requirements of its clients.

Founded in 2001 and headquartered in Shenzhen, China BAK Battery has expanded its manufacturing footprint and research and development capabilities over the years to serve customers across Asia, Europe and North America.