Update: Echelon's Q2 Earnings - Sales And Margins Continue Falling, Outlook Expects More Weakness
Martin Vlcek • Mon, Aug. 11
- Total revenues fell 40% Y/Y, especially on weak smart grid sales. Company plans to downsize the Grid business after a failed attempt to sell. Restructuring costs can be expected.
- Investors should wait for a clear confirmation that the sales and margins stopped deteriorating. More stock weakness may be ahead due to restructuring and falling sales before things get better.
- My thesis worked extremely well in terms of the advice to wait for a 20% pullback. After the dip, the stock skyrocketed 100% but later fell to the original level.