GreenPower Sales Rises 76% in Q4; Shares Gain More Than 6%

Shares of GreenPower Motor (GPV), a builder of electric buses, gained more than 6% in early trading on Tuesday after the company reported strong revenues in the fourth quarter.

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Revenue came in at C$4.38 million for Q4 2021, an increase of 76%, from C$2.49 million in Q4 2020. Cost of Revenue was C$3.21 million, for a gross profit of C$1.17 million.

Meanwhile, cash expenses for the quarter were C$2.04 million compared to C$1.91 million in the prior-year quarter. Working capital was C$30.81 million at the end of the quarter ended March 31, compared to C$31.31 million at the end of the previous quarter.

GreenPower President Brendan Riley said, “With the consistent run rate production for our EV Star and School Buses that was increased in Q4, we are building to meet the high demand for GreenPower products across multiple sectors including: transit, delivery, student transportation, fleet operators, municipal and final stage manufacturers. GreenPower has the most compelling vehicles in the medium and heavy duty, commercial EV sector. We expect strong demand for the foreseeable future.”

During the quarter, GreenPower delivered five EV250 thirty-foot all-electric buses for LAX airport shuttle operations and sold 30 EV Stars to Zeem Solutions, which were previously rented by another customer. Inventories stood at C$12.5 million as of March 31, 2021, up from C$6.6 million in the previous year. (See GreenPower Motor stock chart on TipRanks)

Maxim Group analyst Tate Sullivan recently kept a Buy rating on GPV with a C$55.38 price target. This implies 128% upside potential.

Tate Sullivan is the only analyst to have offered a rating for GreenPower stock in the past three months. Shares have fallen almost 40% year-to-date.