Shares of Romeo Power (NYSE:RMO) were down sharply in trading on Wednesday morning. The California-based maker of battery packs for electric trucks and buses reported 2020 earnings and provided 2021 guidance that fell short of Wall Street’s expectations, as well as its own earlier guidance.
As of 11 a.m. EDT today, Romeo Power’s shares were down about 17.2% from Tuesday’s closing price.
In a preliminary earnings statement released after the markets closed Tuesday, Romeo Power said that it generated $9 million of revenue in 2020, and that it expected its 2021 revenue to come in between $18 million and $40 million.
That sounds like decent year-over-year growth, but there are two problems. First, Wall Street analysts polled by Thomson Reuters had expected 2020 revenue of $9.78 million, so that was a miss. Second, both the 2020 revenue and the 2021 guidance range fell quite a bit short of the projections the company had made in November.