Carbon Revolution (ASX:CBR) share price leaps 17% as sales surge

Why are the shares of this wheelmaker charging ahead today?

| More on:
Two women in a 4WD vehicle with Carbon Revolution wheels drive along laughing with one throwing her arms in the air

Image source: Getty Images

Key points

  • Carbon Revolution share price exploding, up 17.26%
  • Revenue up by 92.6%, according to quarterly update
  • Wheel sales soared by 109.4%

The Carbon Revolution Ltd (ASX: CBR) share price is soaring today on the back of the company’s quarterly update.

At the time of writing, shares in the lightweight carbon fibre wheelmaker are swapping hands for 99 cents. This is a 17.26% increase from yesterday’s close.

Let’s take a look at what Carbon Revolution announced today.

Carbon Revolution share price explodes amid quarterly results

The Geelong-based company revealed the following:

  • Quarterly total revenue of $11.4 million, up 82.6% on the previous corresponding quarter (PCP) of Q1 FY22
  • Wheel sales up 109.4% on the PCP to 4,397 wheels
  • Cash balance of $47.8 million
  • Net cash outflow of $16 million for the quarter, in line with expectations

What else happened in the quarter?

A highlight for the company was the news that its carbon fibre wheels would be used on General Motors’ new Chevrolet C8 Corvette Z06 and Z07.

This is the first such partnership that Carbon Revolution has formed with the US-based car manufacturing giant.

Company managers also signed 2 new engineering deals. This includes an electric vehicle (EV) SUV deal.

What’s next for Carbon Revolution?

In FY22, the company intends to produce more Ferraris and launch production of the Corvette Z06 and Z07 wheels.

Carbon Revolution managers hope to better the company’s technology, equipment, and processes to improve its operations. The company is positive about its customer engagement on new initiatives and demand for its wheels.

In the company statement, Carbon Revolution said:

The global transition to electric vehicles is driving demand, with customers looking to benefit from the 40-50% weight savings of carbon fibre…

Carbon Revolution is optimistic that its sales outlook and new program pipeline is sound.

The company has 15 ongoing programs, including 8 awarded contracts and 7 design and engineering phase projects.

Carbon Revolution share price recap

The Carbon Revolution share price has gravitated downwards by 4.37% in 2022. Over the past 12 months, the share price has dropped 62.4%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5.2% in the past year.

Carbon Revolution has a market capitalisation of roughly $203 million based on its current share price.

Should you invest $1,000 in Carbon Revolution right now?

Before you consider Carbon Revolution , you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Carbon Revolution wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Carbon Revolution Limited. The Motley Fool Australia has recommended Carbon Revolution Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Consumer Staples & Discretionary Shares

man at casino throwing chips in the air
Broker Notes

Why the Aristocrat share price is surging again today

The gain comes on top of its 6.7% surge yesterday.

Read more »

Supermarket trolley with groceries going up the stairs with a rising red arrow.
Consumer Staples & Discretionary Shares

Woolworths share price lifts following $218m online marketplace deal

The supermarket giant is gaining alongside the ASX 200 on Friday.

Read more »

Sad person at a supermarket.
Consumer Staples & Discretionary Shares

Why is the Woolworths share price sliding 7% today?

Aussie investors heed Target's inflationary warning...

Read more »

Supermarket trolley with a red arrow pointing downwards, symbolising a falling share price.
Consumer Staples & Discretionary Shares

Here’s why the Coles share price is tumbling 5% today

Could recession talk be impacting the supermarket's stock?

Read more »

wine share price rising represented by two people raising wine glasses
Consumer Staples & Discretionary Shares

Treasury Wine share price beating the sell-off amid ‘made in China’ push

Let's take a closer look.

Read more »

A woman leaps into the air with loads of energy, in a lush green field.
Consumer Staples & Discretionary Shares

Own Woolworths shares? The company’s about to hit a major sustainability milestone

Woolies' South Australian operations are set to switch off from fossil fuels in July thanks to a new partnership.

Read more »

A trader stand looking at a sharemarket graph emblazoned with the words buy and sell
Consumer Staples & Discretionary Shares

Could the Wesfarmers share price have already bottomed?

Could Wesfarmers shares be in the buy zone today?

Read more »

Woman thinking in a supermarket.
Consumer Staples & Discretionary Shares

Why I think Coles is a better ASX dividend share than Woolworths

Are Coles shares a better pick for dividends than Woolworths?

Read more »