Ocean Power Technologies (OPTT) Earnings: What to Expect

NEW YORK (TheStreet) -- Ocean Power Technologies (OPTT) is due to report its third quarter before the bell Friday, March 14.

Analysts surveyed by Thomson Reuters anticipate a net loss of $3.76 million, or 31 cents a share, on revenue of $920,000 for the three months to January.

In its second quarter ended October, the wave energy specialist recorded a net loss of $3.27 million, or 31 cents a share, on $460,000 in revenue.

On Tuesday, shares have surged 15.3% to $5.44.

In mid-February, shares soared after the company announced a partenership with Lockheed Martin (LMT) to develop the world's largest project harnessing wave energy. Based off the coast of Victoria, Australia, the project will use Ocean Power's technology which converts wave energy into clean energy via the bobbing movement of a buoy. The mechanical energy produced drives an electrical generator, which transmits power through an underwater cable.

The project is due for completion as early as 2018.

Since the beginning of the year, the stock is up 184.3%.

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TheStreet Ratings team rates OCEAN POWER TECHNOLOGIES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate OCEAN POWER TECHNOLOGIES INC (OPTT) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and poor profit margins."

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