Dragonfly Energy Holdings Corp ( DFLI ) shares are rocketing premarket today after the company reported fourth-quarter FY23 results.

Sales declined to $10.4 million from $20.2 million a year ago, missing the consensus of $12.2 million.

Gross profit dropped to $2.0 million from $4.0 million a year ago and Adjusted EBITDA improved to negative $(2.1) million, compared to a negative $(4.7) million in the fourth quarter of 2022.

Net income for the quarter stood at $3.0 million vs. net loss of $(32.5) million a year ago.

EPS of $0.05 beat the consensus estimate of $(0.20).

The company held cash and equivalents of $12.7 million as of December 31, 2023.

Denis Phares, Chief Executive Officer, said, “In 2023, we completed the pilot line for our patented chemistry-agnostic dry deposition process, proving that we could produce anode and cathode materials at scale, and are now in the process of delivering sample battery cells to customers across several different industries and markets.” 

“We are extremely excited about 2024 as the convergence of the new cell manufacturing, the expansion of our customer base and market segments, and the stabilization and return to growth of the RV markets sets the stage for an expected return to growth.”

Outlook: Dragonfly sees first-quarter revenue of $12.0 million – $13.0 million (consensus $14.1 million) and EPS of $(0.13) – $(0.17) per share (consensus $(0.15).

The company said it believes that the RV market appears to have stabilized and is showing early signs of recovery. In addition, the company said its entry into the heavy-duty trucking market, while still in its early stages, is gaining traction and has the potential to be a more meaningful revenue contributor in the second half of 2024.

Also Read: EXCLUSIVE: Dragonfly Energy’ Scales New Heights in Lithium Battery Production With Cathode Electrode Dry Deposition

Price Action: DFLI shares are trading higher by 53.8% at $0.6924 in premarket on Tuesday.