XL Fleet Corp. (XL) provides fleet electrification solutions for commercial and municipal vehicles. It’s hybrid and plug-in hybrid electric drive systems can augment fuel economy by about 25% to 30%, while also lowering carbon dioxide emissions by about 20% to 33%. Recently, XL completed installing a series of charging stations for Apex Clean Energy.
In its recent Q3 showing, the company’s revenue dropped to $3.2 million from $6.3 million a year ago. Gross margin expanded to 22% from 12% a year ago. For the fourth quarter, XL is expected to report a net loss per share of $0.11 compared to a net loss per share of $0.07 a year ago.
With these developments in mind, let us take a look at the changes in XL’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, XL Fleet’s top risk category is Finance & Corporate, contributing 36% to the total 78 risks identified.
In its recent quarterly report, the company has added two key risk factors under the Production risk category. Compared to a sector average of 27%, XL’s Production risk factor is at 18%.
XL noted that it has recently seen top management changes, which include the appointment of a new CEO. Changes in top brass and uncertainty stemming from pending changes could impact XL’s operations, partner relationships and hamper its ability to attract needed personnel.
The company highlighted that it often develops products under co-development agreements and in some cases it has made investments in those counterparties. This exposes XL to counterparty risk, and if these businesses or products fail to gain the anticipated success, then XL’s revenue and investments may see an adverse impact.
Tracking Insiders
Keeping a tab on insiders stocks can provide timely insights for retail investors. According to TipRanks data on Insider Activity, insiders have bought XL Fleet shares worth $274.1 thousand in the last three months, indicating a positive insider confidence signal for the stock.
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