Industry Overview - The U.S. electricity demand is projected to grow at a 2.4% annualized rate through the end of the decade, marking a significant increase compared to the previous decade where growth was zero [1] - This growth will necessitate approximately $50 billion in investment for new power production and additional billions for grid connectivity [1] Quanta Services - Quanta Services is a major player in electricity infrastructure, with a market cap of $44 billion and trailing 12-month revenue of $22 billion [2] - The company has experienced solid growth, particularly following the infrastructure bills passed under the Biden administration [2] - Free cash flow has increased significantly, reaching around $1.5 billion [2] - Quanta's recent acquisition of Cupertino Electric Inc. enhances its position in the rapidly growing AI data center market, which is expected to contribute 0.9% to the overall electricity demand growth [4] Emcor Group - Emcor Group operates in both electrical and non-electrical sectors, providing design, construction, and maintenance services [5] - The electrical division is significant, handling power generation, solar module installation, and electric charging stations [5] - Emcor has seen low-teens growth and free cash flow exceeding $1 billion, with revenue growth accelerating to over 20% in the last quarter [6] - The stock is valued at 25 times trailing earnings and 20 times cash flow, indicating it is not expensive for its growth rate [6] American Superconductor Corp. - American Superconductor Corp. is a small-cap company with a market cap of $920 million, experiencing a revenue increase of about 33% in its recent quarter [7] - The company specializes in power systems and voltage control equipment that enhance grid efficiency [7] - AMSC utilizes advanced materials, such as yttrium barium copper oxide, to create high-temperature superconductors that conduct electricity more efficiently [7] - The company has expanded its military business through the acquisition of NWL, which is expected to provide significant synergies [8]

Core Viewpoint - The Federal Reserve's decision to cut the benchmark lending rate by 50 basis points is expected to benefit small businesses, leading to potential investment opportunities in this sector [1][4]. Small Business Sector - Small businesses have faced significant challenges since the COVID-19 pandemic, including demand issues and supply chain disruptions [3]. - Post-pandemic, inflation and high-interest rates have further strained small businesses, which typically operate on thin profit margins and lack geographical diversification [3]. - A decline in interest rates is crucial for the survival of small-cap stocks, as they rely heavily on affordable credit [4]. Investment Opportunities - Five small-cap companies are identified as having strong growth potential and positive earnings estimates for the remainder of 2024: EZCORP Inc., American Superconductor Corp., Byrna Technologies Inc., Lifeway Foods Inc., and Willdan Group Inc. [2][5]. - These companies have shown significant stock price increases year-to-date, with further upside potential [2]. Company Summaries EZCORP Inc. - EZCORP provides pawn services across the U.S. and Latin America, operating through multiple segments and offering a web-based application for customer transactions [6]. - Expected revenue and earnings growth rates for EZCORP are 7.6% and 8.9%, respectively, with a short-term stock price upside of 47.5% from an average target price of $16 [7]. American Superconductor Corp. - AMSC offers power resiliency solutions globally, focusing on grid and wind segments [8]. - The company anticipates a revenue growth rate of 41.6% and earnings growth of over 100%, with a stock price upside of 38.5% from an average target price of $30.33 [9]. Byrna Technologies Inc. - Byrna develops and sells less-lethal personal security solutions, targeting both consumer and professional markets [10]. - The expected revenue growth rate is 86.3%, with earnings growth exceeding 100%, and a stock price upside of 28.9% from an average target price of $19.42 [11]. Lifeway Foods Inc. - Lifeway produces probiotic-based products, primarily drinkable kefir, and markets them under various brand names [12]. - The company projects revenue and earnings growth rates of 24.8% and 32%, respectively, with a stock price upside of 21.6% from an average target price of $26.50 [13]. Willdan Group Inc. - Willdan provides professional and consulting services in energy and engineering [14]. - The expected revenue and earnings growth rates for Willdan are 29.5% and 20%, respectively, with a stock price upside of 19.2% from an average target price of $49 [15].

The Zacks Electronics - Miscellaneous Components industry is benefiting from the ongoing automation drive, and increased spending by manufacturers of semiconductors, automobiles, machinery and mobile phones. Notably, industry players like Fabrinet (FN) , Novanta (NOVT) , OSI Systems (OSIS) and American Superconductor (AMSC) are well-poised to benefit from the solid adoption of AI and the democratization of IoT techniques, which are transforming robotics, industrial automation, transportation systems, retail ...

Group 1 - American Superconductor (AMSC) is part of the Computer and Technology group, which includes 617 companies and ranks 8 in the Zacks Sector Rank [1] - AMSC has a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions [2] - The Zacks Consensus Estimate for AMSC's full-year earnings has increased by 477.8% in the past quarter, reflecting improved analyst sentiment [2] - AMSC has achieved a year-to-date return of approximately 92.5%, significantly outperforming the average return of 20.6% for Computer and Technology companies [2] - AMSC belongs to the Electronics - Miscellaneous Components industry, which has 28 companies and currently ranks 76 in the Zacks Industry Rank [3] - The Electronics - Miscellaneous Components industry has gained about 3.1% year-to-date, indicating AMSC's superior performance within this group [3] Group 2 - Amphenol (APH), another stock in the Computer and Technology sector, has a year-to-date return of 28.3% [2] - The consensus EPS estimate for Amphenol has increased by 4% over the past three months, and it holds a Zacks Rank of 2 (Buy) [3] - Amphenol is part of the Electronics - Connectors industry, which has 2 stocks and is currently ranked 94, with a year-to-date return of +27.3% [3]

Core Viewpoint - AMSC has updated its financial guidance for the second fiscal quarter of 2024, reflecting the acquisition of NWL, with expected revenues now projected between $50 million and $55 million, significantly higher than the previous guidance of $38 million to $42 million [1][2] Financial Guidance - AMSC anticipates positive cash generation of $1.0 to $4.0 million for the second quarter of fiscal 2024, compared to the previous guidance of breakeven to a positive cash generation of $2.0 million [1] Acquisition Impact - The acquisition of NWL is expected to enhance the quality of AMSC's revenues and earnings, as well as expand its penetration in the industrial market [2] - NWL's expertise in providing power supplies for critical military systems is anticipated to strengthen AMSC's military business and broaden its customer base [2] Company Overview - AMSC specializes in megawatt-scale power resiliency solutions, including Gridtec™, Marinetec™, and Windtec® Solutions, aimed at optimizing power network reliability and efficiency [3] - The company has a global presence with operations in Asia, Australia, Europe, and North America, and focuses on enhancing the performance and reliability of power networks and military fleets [3]

American Superconductor (AMSC) closed the last trading session at $18.73, gaining 0.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $27 indicates a 44.2% upside potential.The mean estimate comprises three short-term price targets with a standard deviation of $3.46. While the lowest estimate of $23 indicates a 22.8% increase from the current price level, the most optimistic analy ...

Core Viewpoint - American Superconductor (AMSC) has demonstrated significant growth, with a year-to-date stock price increase of 79.3%, reflecting strong investor confidence in its fundamentals [1] Group 1: Company Performance - AMSC's stock performance has outpaced the Zacks Computer & Technology sector and the S&P 500 index, which rose by 7.5%, 22.7%, and 17.9% respectively [1] - The company is recognized as the leading supplier of high-temperature superconductor cables, benefiting from momentum in the semiconductor industry [1] Group 2: Market Positioning - AMSC is well-positioned in alternative energy, with strong demand for its grid interconnection solutions, licensed wind energy designs, and electrical systems [1][4] - The company is expanding its addressable market through its power grid, wind, and marine solutions, catering to the growing demand for renewable energy and electrification [4] Group 3: Product Offerings and Customer Momentum - AMSC's product offerings, including D-VAR Systems and actiVAR Systems, enhance power grid capacity and efficiency, driving momentum among power grid operators [4] - The company is experiencing strong demand in the wind power market, supported by its Electrical Control Systems and Wind Turbine Designs [5] - AMSC has secured significant orders, including a record $75 million order from the Royal Canadian Navy and a follow-on order exceeding $12 million from InoxWinds [7] Group 4: Financial Estimates - The Zacks Consensus Estimate for second-quarter fiscal 2024 revenues is $50.05 million, indicating a year-over-year growth of 47.2% [9] - The fiscal 2024 revenue estimate stands at $206.2 million, reflecting a year-over-year growth of 41.6%, with earnings expected to rise significantly from 2 cents in fiscal 2023 to 31 cents [9] Group 5: Valuation and Investment Outlook - AMSC's stock is currently trading at a premium, with a forward Price/Sales ratio of 3.55X compared to the industry's 2.65X, indicating a stretched valuation [10] - Despite the perceived risk of overvaluation, the premium is justified by the company's strong financial performance and growth prospects in key markets [12] - The combination of strong momentum in various end-markets, innovative products, and rising deal wins positions AMSC as a compelling investment opportunity [13]

Creating a portfolio with favorable liquidity stocks is likely to work in favor of investors seeking healthy returns.Liquidity measures a company’s capability to meet short-term debt obligations. Stocks with high liquidity levels have always been in demand, owing to their potential to provide maximum returns.One needs to exercise caution before investing in such stocks. High liquidity may indicate that the company is clearing its dues faster than its peers. However, it may also suggest that the firm cannot ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $40.3 million, a growth of over 30% compared to $30.3 million in Q1 2023 [13][10] - Gross margin increased to 30% from 21% in the year-ago quarter, driven by higher revenues and improved pricing [14][13] - Net loss for Q1 2024 was $2.5 million or $0.07 per share, compared to a net loss of $5.4 million or $0.19 per share in the previous year [15][16] - Non-GAAP net income for Q1 2024 was $3 million or $0.09 per share, compared to a non-GAAP net loss of $2.1 million or $0.08 per share in Q1 2023 [16] Business Line Data and Key Metrics Changes - Grid business unit accounted for 80% of total revenues, with a 26% increase year-over-year [13] - Wind business unit revenues increased by 76% year-over-year, driven by ECS shipments [13][10] - The company reported a record $75 million order for ship protection systems from the Royal Canadian Navy [11] Market Data and Key Metrics Changes - The company ended Q1 2024 with a 12-month backlog of $160 million and a total backlog of $250 million, up from $140 million at the start of the year [11][19] - New Energy Power Systems orders totaled approximately $33 million, reflecting strong contributions from various sectors [11] Company Strategy and Development Direction - The acquisition of NWL is expected to accelerate profitable growth and broaden product offerings, particularly in the industrial and military sectors [22][24] - The company aims to expand its military footprint within the Department of Defense, especially the U.S. Navy, by integrating NWL's capabilities [23][25] - The strategic focus is on building a more predictable and diversified business, with expectations for sustainable profitability [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position, citing strong orders momentum and financial results [26][27] - The company anticipates continued growth driven by U.S. policies and momentum in wind and ship businesses [27][28] - Management highlighted the potential for doubling revenue from fiscal 2021 levels, aiming for $50 million per quarter [27] Other Important Information - The company generated $3.1 million of operating cash flow in Q1 2024, with cash and equivalents totaling $95.5 million [16][15] - The NWL acquisition was completed for approximately $61.4 million, expected to positively impact financial performance [18][21] Q&A Session Summary Question: Trends impacting NWL's business - Management noted that NWL's recent performance has been stronger than the three-year average, with improving margins [32] Question: Inox order cadence - Management confirmed that Inox's backlog stands at over 2.7 gigawatts, with products expected to be shipped within the fiscal year [34] Question: Synergies from NWL acquisition - Management highlighted significant synergies, particularly in expanding customer access in the industrial sector and enhancing military capabilities [38][39] Question: Integration timeline for NWL - Management indicated that integration would be straightforward due to NWL's established operations and culture, with a few months needed for full financial integration [41][42] Question: Military vs. industrial revenue mix for NWL - Management estimated that 20% to 30% of NWL's business is military, with expectations for significant growth in this area [46]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2024 ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _____ to _____. Commission File Number: 0-19672 American Superconductor Corporation (Exact name of registrant as specified in its charter) Delaware 04-2959321 (State or othe ...