Meme stock Enovix (ENVX) posted record revenues for both the fourth quarter and the full year 2024 as the company benefitted from rising demand for its lithium-ion batteries and eyes a big smartphone order later this year.
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Fiscal fourth quarter revenues reached $9.7 million, at the top end of guidance and ahead of expectations, while full year revenues rose over 200% to $23.1 million. The company also notched its first-ever positive gross margin of 11% of sales in Q4 2024. Q4 net loss per share was $0.11 vs $0.18 expected.
“2024 was a big year for us,” said president and CEO Raj Talluri. “We made significant strides by launching new high-volume manufacturing line in Malaysia with custom battery cells already shipping from the agility line and high-volume production slated for 2025.”
The company, which makes batteries for anything from wearables and laptops to electric vehicles (EVs) and drones, shipped samples to its smartphone manufacturer client and is on track for commercial smartphone launches in 2025, Talluri said.
Obligatory Tariff Question
Asked about the potential implications of tariffs, Talluri said the company was getting increased interest since last November for its batteries from defense and other industrial customers in the U.S. “We don’t see much effect on the tariffs at this point,” he added.
ENVX Eyes Defense Sector
Talluri said the firm was seeing demand from drone manufacturers and defense suppliers seeking battery solutions that comply with allied country supply chain requirements.
Earlier this year, he said the company secured a sample purchase order from one of these suppliers for autonomous AI systems. “While these developments are still evolving, we’re optimistic about the potential upside from these,” the CEO added.
Looking ahead, the company sees Fiscal Q1 revenue between $3.5 million and $5.5 million, which was short of the consensus $6.21 million. It also anticipates an EPS loss of $0.23 to $0.29.
Craig-Hallum analyst Anthony Stoss lowered his price target on Enovix to $18 from $20 and kept a Buy rating on the shares. He believes Enovix is positioned for its long-anticipated volume smartphone order late in 2025, which is believed to be a Chinese handset maker.
Is ENVX a Good Stock to Buy?
Overall, Wall Street has a Strong Buy rating on ENVX stock, based on five Buys and one Hold. The average ENVX price target of $20.67 implies about 80% upside.
