Why Ascent Solar Technologies (ASTI) Stock Finished Higher On Tuesday

NEW YORK (TheStreet) -- Shares of Ascent Solar Technologies Inc. (ASTI) closed higher 9.81% to $0.528 on Tuesday after the company announced, based on preliminary data, it expects revenue for the 2014 first quarter to increase 30% to $753,000 from $176,000 in the 2013 first quarter.

Ascent Solar said the growth in revenue was the result of an increase in the sale of its EnerPlex consumer products, which increased 29% quarter over quarter to $630,000.

The company, which commercializes photovoltaic modules, has yet to release its full 2014 first quarter earnings report.

TheStreet Ratings team rates ASCENT SOLAR TECHNOLOGIES as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ASCENT SOLAR TECHNOLOGIES (ASTI) a SELL. This is driven by multiple weaknesses, 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 generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Aerospace & Defense industry and the overall market, ASCENT SOLAR TECHNOLOGIES's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$5.37 million or 11.08% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • ASTI has underperformed the S&P 500 Index, declining 22.17% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • ASCENT SOLAR TECHNOLOGIES's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ASCENT SOLAR TECHNOLOGIES reported poor results of -$0.67 versus -$0.64 in the prior year. This year, the market expects an improvement in earnings (-$0.39 versus -$0.67).
  • The net income growth from the same quarter one year ago has exceeded that of the Aerospace & Defense industry average, but is less than that of the S&P 500. The net income increased by 7.5% when compared to the same quarter one year prior, going from -$10.95 million to -$10.13 million.
  • You can view the full analysis from the report here: ASTI Ratings Report
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