Here is why Orion Energy Systems Inc. (OESX) stock drowned on Tuesday?

Orion Energy Systems Inc. (OESX) shares fell 13.53% in after-hours on Tuesday, January 18, 2022, and closed the daily trading at $3.45. Even in the regular trading session of Tuesday, OESX’s stock lost 5.90%. OESX shares have fallen 63.56% over the last 12 months, and they have moved down 1.97% in the past week. Over the past three months, the stock has lost 4.55%, while over the past six months, it has declined 21.30%.

Let’s have a brief discussion about its recent news.

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OESX revised financial outlook

On January 18, 2022, Orion Energy Systems, Inc. (OESX), announced that it expects preliminarily revenue of approximately $30.5 million for its FY 2022 third quarter ended December 31, 2021.

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Due to several issues, Orion now anticipates FY 2022 revenue of approximately $130 million, as compared to its prior expectation of at least $150 million.

The company is going to release its final third-quarter financial results on 9 February 2022 and will provide more perspective on its fiscal 2022 expectations.

OESX acquired Stay-Lite Lighting

On January 05, 2022, Orion Energy Systems, Inc. (OESX) announced the acquisition of Stay-Lite Lighting, a nationwide lighting and electrical maintenance service provider. Stay-Lite Lighting will operate as Stay-Lite, an Orion Energy Systems business. Stay-Lite Lighting has annual revenues of approximately $9 million.

OESX shareholder rights plan

On December 22, 2021, the board of directors of Orion Energy Systems, Inc. (OESX) determined to allow Orion’s shareholder rights plan to expire by its terms on January 7, 2022.

Orion’s Chief Executive Officer and Board Chair Mike Altschaefl said that the plan had been put in place in January 2009 as a protective measure at a time when Orion’s share price and operating performance made it potentially vulnerable to hostile efforts to gain control. Now that the business is profitable and on a solid growth trajectory, the Board agrees that a shareholder rights plan is no longer needed.

OESX latest financial results

On November 09, 2021, Orion Energy Systems, Inc. (OESX) announced results for its fiscal 2022 second quarter which ended on September 30, 2021.

Q2 2022 financial highlights

  • OESX reported total revenue of $36.5 million for the second quarter of fiscal 2022 compared to $26.3 million in Q2 2021.
  • Gross profit was $10.8 million in Q2 2022 compared to $7.3 million in Q2 2021.
  • Total operating expenses were $5.75 million compared to $5.4 million in Q2 2021.
  • It earned a net income of $3.7 million or $0.12 per share in Q2 2022 compared to a net income of $1.9 million, or $0.06 per share, in Q2 2021.
  • EBITDA was $5.4 million compared to $2.3 million in Q2 2021.
  • As of September 30, 2021, the company had 40 million of liquidity, including $14.7 million of cash and cash equivalents and full availability on its $25 million credit facility.

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The company lowered its financial expectations for Q3 and FY 2022 due to which its stock price went down on Tuesday. We can expect it to further decline on Wednesday as well.

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