Clean Diesel Technologies (CDTI): OpEx Management Drives EPS Upside - Cowen

Cowen analyst, Jeffrey Osborne, reiterated his Outperform rating on shares of Clean Diesel Technologies (NASDAQ: CDTI) after the company reported revenue of $8.4mn, below consensus estimates of $8.6mn. GM was 23.1%, below forecast but up 310 bps y/y reflecting improved product mix. Operating expense was $2.3mn, markedly below our estimate of $3.4 helping EPS of ($0.02) come in above the Street's forecast of ($0.07).

The analyst stated "Clean Diesel enters into the final quarters of its transition, feathering in new sources of revenue as it exits its coated catalyst business with Honda. We are constructive on advanced material shipments beginning in 4Q to China & India, but note that management has a lot of balls in the air. We expect to see continued cost discipline as the company works on improving revenue visibility in 18/19".

No change to the price target of $4.

For an analyst ratings summary and ratings history on Clean Diesel Technologies click here. For more ratings news on Clean Diesel Technologies click here.

Shares of Clean Diesel Technologies closed at $1.62 yesterday.

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