Microvast Holdings Inc ( MVST ) shares are trading lower Tuesday after the company reported fourth-quarter financial results and issued weak guidance.

What Happened: Microvast ( MVST ) said fourth-quarter revenue increased 61.4% year-over-year to $104.58 million, which beat the consensus estimate of $94.43 million, according to Benzinga Pro. The company reported an adjusted loss of 4 cents per share, which beat estimates for a loss of 7 cents per share.

Gross margin increased to 22%, up from 3.4% in the fourth quarter of 2022. Adjusted EBITDA was negative $2.6 million in the fourth quarter. Microvast ( MVST ) ended the quarter with $93.8 million in cash, equivalents, restricted cash and short-term investments.

The main thing weighing on shares Tuesday appears to be the guidance. Microvast ( MVST ) said it expects first-quarter revenue to be in the range $65 million to $75 million versus estimates of $132.84 million. The company also said it's targeting gross margin of 20% to 25% in the first quarter.

“The revenue growth achieved in EMEA is really encouraging and we would expect this to continue into 2024, with the possibility of this region also hitting breakeven this year. In APAC, with the Huzhou Phase 3.1 expansion now in full operation since Q3 of last year, we anticipate another year of steady revenue growth from mature operations that are now self funding and profitable,” said Yang Wu, founder, chairman and CEO of Microvast ( MVST ).

“To get the U.S. to the same mature and steady state requires us to secure financing to complete Clarksville Phase 1A. This remains a key initiative that we hope to bring to a successful close as early as possible.”

Following the print, Oppenheimer analyst Colin Rusch maintained Microvast ( MVST ) with an Outperform rating and lowered the price target from $8 to $4.

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MVST Price Action: Microvast ( MVST ) shares were down 31.7% at 61 cents at the time of writing, according to Benzinga Pro.