HYLN - Hyliion stock surges over 10% on lighter than expected loss

2023-05-10 12:20:57 ET

Hyliion Holdings Corp. ( NYSE: HYLN ) shares rose by a double-digit percentage after cutting expense forecasts.

The Texas-based powertrain solutions provider posted a mixed Q1 report as losses were lighter than anticipated even as revenue fell well short of estimates. However, the company lowered its total operating expense guidance to about $130M from a prior range of $130M to $140M. Total cash consumed in operating losses, capital spending and working capital is expected to hit $150M for the year, $50M lower than the company had previously forecast as well.

“I am pleased to report that we are pulling ahead our plans to begin production of our Hypertruck ERX powertrain system to the third quarter which will be followed by sales to customers later this year,” CEO Thomas Healy said. “While we are pleased with this progress, we also recognize the importance in today’s market of conserving cash and focusing our capital resources on the most critical activities. We are therefore making strategic changes that include reducing spending, slowing the ramp-up of truck production, and restructuring agreements with initial Founders program customers.”

The company said that it ended Q1 with $385M in cash, short-term and long-term investments, and “currently has no plans to raise additional capital.” The company expects to deliver its first 30 trucks by the close of the calendar year.

Shares of Hyliion ( HYLN ) rose 9.5% near the midpoint of Wednesday’s trading, tempering an over 15% gain at the intraday high. Hyliion courts 10.86%% in short interest, according to Seeking Alpha data.

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