Strong second quarter for American Superconductor


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AMSC earnings beat underscores strong EPS, revenue growth, and raised guidance, as shares rise; high temperature wire order and wind turbine investment highlight momentum in renewable energy, exceeding analysts' expectations.

 

What You Need to Know

AMSC beat EPS estimates, raised guidance, and logged its 15th straight revenue gain on renewable energy momentum.

  • Adjusted EPS $0.32 vs $0.28 consensus; GAAP EPS $0.22
  • Revenue $101.5M vs $101.0M estimate; +36% y/y
  • Stock up 4.1% to $33.82 in morning trade
  • Record 3 million meters HTS wire order booked

 

American Superconductor Corp., which makes technologies for the power industry, said its fiscal second quarter profit more than doubled as its revenue shot up 36 percent on strong demand from its customers. It raised its guidance for the full year.

 

Its shares rose $1.32, or 4.1 percent, to $33.82 in morning trading.

The company, based in Devens, Mass., said its net income rose to $10.0 million, or 22 cents per share, for the three months ended September 30 from $4.3 million, or 10 cents per share, a year ago.

Excluding one-time items, it earned 32 cents a share. Analysts surveyed by Thomson Reuters, citing demand for smart grids boosting Telvent in recent quarters, expected earnings of 28 cents a share.

Revenue rose to $101.5 million from $74.7 million a year ago, mirroring trends at Canadian Hydro Developers after a series of acquisitions this year. Analysts expected $101 million in revenue.

It was the fifteenth straight quarter of revenue growth for the company. AMSC said its high temperature wires business, bolstered by a recent wind deal in China announcement, recently booked an order for 3 million meters of wire, the biggest order the company has ever gotten.

The company added that a recent investment in wind turbine manufacturer Blade Dynamics Ltd. enables it to capitalize on the growing renewable energy industry, where developers such as Canadian Hydro have surged recently.

Enlivened by the quarter's results, AMSC raised its full-year guidance for earnings excluding items to between $1.30 to $1.35 a share on revenue of $430 million to $440 million, reflecting momentum also seen at TransAlta in recent updates. Its previous guidance was for earnings of $1.20 to $1.25 a share excluding items on revenue of $420 million to $430 million.

Analysts expected full-year earnings of $1.25 per share on revenue of $430.7 million.

 

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