Performance and Market Position - American Superconductor Corporation (AMSC) delivered a remarkable 185.1% return over the past year, outperforming the Zacks Electronics - Miscellaneous Components industry, the S&P 500, and the Technology Select Sector SPDR Fund (XLK) ETF [1] - AMSC shares have outperformed competitors like Ballard Power Systems (BLDP) and OSI Systems (OSIS) in the Electronics - Miscellaneous Components industry [2] Renewable Energy and Grid Modernization - AMSC's success is driven by its strategic positioning in the renewable energy and grid modernization sectors, with a portfolio including advanced grid interconnection systems, high-temperature superconductor cables, and wind turbine designs [4] - Recent contract wins, such as a $75-million agreement with the Royal Canadian Navy and a $12-million follow-on order from InoxWinds, highlight AMSC's ability to secure steady revenue streams and reinforce confidence in its execution capabilities [5] Diversified Offerings and Market Expansion - AMSC's diversified offerings cater to utilities, renewables, and defense industries, with strong demand for its D-VAR systems and advanced wind turbine designs [6] - The acquisition of NWL expands AMSC's footprint in the military and industrial markets, positioning it to benefit from rising global defense budgets and increased naval investments [6][7] Financial Performance and Growth Potential - AMSC reported a 60.3% year-over-year increase in revenues in Q2 fiscal 2025, reaching $54.5 million [9] - The Zacks Consensus Estimate forecasts revenue growth of 44.7% in fiscal 2025 and 19.6% in fiscal 2026, with earnings per share expected to rise from 2 cents in fiscal 2024 to 50 cents in fiscal 2025 and 55 cents in fiscal 2026 [9] - AMSC has consistently surpassed earnings expectations, with an average surprise of 328.2% over the past four quarters [10] Valuation and Investment Considerations - AMSC's forward 12-month price-to-sales (P/S) ratio of 4.5 is significantly higher than the industry average of 2.47, reflecting its technological edge but also suggesting limited near-term upside [11] - Despite its premium valuation, AMSC's leadership in clean energy, grid modernization, and defense opportunities makes it a compelling long-term investment [13][14]

American Superconductor Corporation (AMSC) has been a respected name in the energy technology space, specializing in power systems and superconductors. However, with the stock’s high valuation, multiple concerns are rising about whether AMSC's premium valuation is justified in the current market.American Superconductor stock is trading at a premium, with a forward 12-month price-to-earnings (P/E) ratio of 46.87 compared with the Zacks Electronics - Miscellaneous Components industry’s 21.14. Similarly, its f ...

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Technology stocks are having a terrific 2024 thanks to strong demand for Artificial Intelligence (AI)-enabled services that are helping in the ongoing digital transformation. The rapid evolution of Generative AI (GenAI) technology is noteworthy, and it continues to attract large spending from big technology companies, including Alphabet, Meta Platforms and Microsoft (MSFT) .The strong demand for data center chips that can power huge Large Language Models (LLMs) bodes well for semiconductor sales. The World ...

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.Investors can consider adding stocks like American Superconductor Corporation (AMSC) , Frontdoor, Inc. (FTDR) , Sezzle Inc. (SEZL) and Vimeo, Inc. (VMEO) to their portfolios to boost returns.However, o ...

Financial Data and Key Metrics - Revenue for Q2 2024 was $54.5 million, a 60% increase compared to $34 million in the same quarter last year [7][12] - Gross margin improved to 29% from 25% in the year-ago quarter, driven by higher revenue, favorable product mix, and price increases [13] - Non-GAAP net income for Q2 2024 was $9.9 million ($0.27 per share), compared to less than $100,000 ($0.00 per share) in the year-ago quarter [15] - Operating cash flow for Q2 2024 was $12.7 million, exceeding guidance due to a large grid milestone payment received ahead of schedule [18] - Cash balance at the end of Q2 2024 was $74.8 million, down from $95.5 million at the end of Q1 2024, primarily due to the $33.6 million cash consideration for the NWL acquisition [17] Business Segment Performance - Grid business unit accounted for 86% of total revenue, growing 65% year-over-year, driven by the NWL acquisition and increased shipments of new energy power systems [12] - Wind business unit accounted for 14% of total revenue, growing 37% year-over-year, primarily due to additional shipments of electrical control systems [12] - New orders for Q2 2024 totaled nearly $60 million, with strong contributions from industrials (40%), renewables (30%), and other sectors like semiconductors, mining, and utilities [9][10] - Backlog at the end of Q2 2024 was over $200 million for the next 12 months and more than $300 million in total [10] Market and Strategic Direction - The company is benefiting from macro tailwinds, including reshoring of domestic industrial production, grid resiliency for renewables, and increased power demand from AI data centers and semiconductor manufacturing [25][26][27] - The CHIPS Act has allocated over $36 billion in funding, driving significant investments in semiconductor manufacturing and related industries, which the company sees as a near-term growth driver [27][30] - The acquisition of NWL has expanded the company's industrial market penetration and customer base, particularly in the semiconductor and mining sectors [25][31] - The company is also seeing growth opportunities in the military sector, with contracts for ship protection systems and mine countermeasure systems [33][34] Management Commentary on Operating Environment and Future Outlook - Management highlighted the company's strong financial performance, including five consecutive quarters of non-GAAP net income and positive operating cash flow [11][32] - The company expects Q3 2024 revenue to be in the range of $55 million to $60 million, with non-GAAP net income exceeding $2 million ($0.05 per share) [19] - Management emphasized the company's focus on scaling revenue while maintaining profitability and cash flow generation, with minimal near-term capital expenditure requirements [20][21] - The company sees significant growth potential in the wind business, particularly with its partner Inox Wind, which has a backlog of over 3 gigawatts of wind capacity [35] Other Important Information - The company retired contingent consideration expenses related to the NEPSI and NWL acquisitions in Q2 2024, with no further contingent consideration expected [16] - The company remains debt-free and believes the NWL acquisition strengthens its balance sheet [18] Q&A Session Summary Question: Wind Business Growth Potential - The company sees significant growth potential in the wind business, particularly with its partner Inox Wind, which has a backlog of over 3 gigawatts of wind capacity [38][39] - Management expects the wind business to grow as Inox Wind expands its operations with 3-megawatt class wind turbines, which could lead to an expanded order book for the company [40] Question: NWL Acquisition Feedback - Management expressed satisfaction with the NWL acquisition, noting positive feedback from customers and the integration of NWL's team into the company [42] - The acquisition has opened new customer opportunities, particularly in the industrial sector, which is expected to drive growth in the near term [43][44] Question: Power Quality IP and Market Position - The company's IP in power quality focuses on thermal management and system-level controls, allowing for smaller, less complex solutions that deliver premium value to customers [48][49] - Management expects gross margins to improve as revenue scales, with potential variability depending on product mix and project scale [50][52] Question: Canadian Navy Contract Revenue Ramp - Revenue from the Canadian Navy contract is expected to start ramping in fiscal 2025, with the first system delivery scheduled for 2026 [54] - The company expects the contract to contribute to margin uplift as revenue scales and project mix stabilizes [57] Question: Grid Congestion Solutions - The company is exploring solutions for grid congestion, including high-temperature superconducting wire, but sees this as a longer-term opportunity [58][59] - In the near term, the company is focused on addressing grid challenges through its new energy power systems, particularly in the context of increased power demand from AI data centers and semiconductor manufacturing [59]

Shares of American Superconductor (AMSC) have gained 7.3% over the past four weeks to close the last trading session at $23.48, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $30.33 indicates a potential upside of 29.2%.The mean estimate comprises three short-term price targets with a standard deviation of $2.31. While the lowest estimate of $29 indicates a 23.5% increase from ...

Financial Performance - Total revenues increased 60% to $54.5 million for the three months ended September 30, 2024, and 47% to $94.8 million for the six months ended September 30, 2024, compared to the same periods in 2023[146] - Grid business unit revenues increased 65% to $46.9 million in the three months ended September 30, 2024, and 46% to $79.3 million in the six months ended September 30, 2024, driven by the acquisition of Megatran and increased shipments of new energy power systems[147] - Wind business unit revenues increased 37% to $7.5 million in the three months ended September 30, 2024, and 55% to $15.5 million in the six months ended September 30, 2024, driven by additional shipments of electrical control systems at increased prices[149] - Gross margin improved to 29% for both the three and six months ended September 30, 2024, compared to 25% and 23% in the same periods in 2023, due to higher revenues, favorable product mix, and pricing increases[150] - Net income improved to $4.9 million in the three months ended September 30, 2024, and $2.4 million in the six months ended September 30, 2024, compared to net losses of $2.5 million and $7.9 million in the same periods in 2023, driven by deferred tax liability from the Megatran acquisition and increased revenues[162] - Non-GAAP net income was $10.0 million in the three months ended September 30, 2024, and $13.2 million in the six months ended September 30, 2024, compared to $0.1 million and a loss of $2.1 million in the same periods in 2023, driven by higher revenues and gross margins[164] Business Operations - The company operates under two business units: Grid and Wind, focusing on power grid solutions and wind turbine technologies respectively[134][135][136] - The company's Grid business segment provides transmission planning services and grid interconnection solutions for renewable energy projects[135] - The Wind business segment supplies advanced power electronics and control systems, and licenses wind turbine designs[136] - The company's core technologies include PowerModule™ programmable power electronic converters and Amperium® high temperature superconductor wires[133] - The company's success depends on the commercial adoption of its REG system, which is currently limited[128] Acquisitions and Investments - The company acquired Megatran for $61.4 million, including a cash payment of $5.0 million and 1,297,600 restricted shares of common stock[143] - Megatran's subsidiary, NWL, Inc., is a U.S.-based provider of engineered power conversion solutions for industrial and military applications[143] - The acquisition of Megatran was completed on August 1, 2024, for an aggregate consideration of $61.4 million, with an additional cash payment of $8.3 million made on September 23, 2024[171] - The company recorded a $3.3 million payment relating to the Megatran acquisition to settle remaining obligations, with the contingent consideration value being de minimis at the acquisition date[154] Financial Transactions and Liquidity - The company completed an offering of 6,210,000 shares of common stock at $11.25 per share, receiving net proceeds of approximately $65.2 million[142] - The company completed a public offering of 6,210,000 shares of common stock at $11.25 per share, raising net proceeds of approximately $65.2 million in February 2024[170] - The company filed a shelf registration statement (First Form S-3) in January 2024, allowing it to offer and sell up to $250 million of securities[169] - A second shelf registration statement (Second Form S-3) was filed in August 2024, allowing the company to offer and sell securities and assist selling stockholders in reselling their common stock[172] - The company believes it has sufficient liquidity to fund operations and capital expenditures for the next twelve months, supported by the $65.2 million equity raise in February 2024[178] Expenses and Costs - Research and development expenses increased 61% to $2.6 million in the three months ended September 30, 2024, and 41% to $4.9 million in the six months ended September 30, 2024, driven by higher compensation and additional supplies[151] - Selling, general, and administrative expenses increased 32% to $10.5 million in the three months ended September 30, 2024, and 23% to $19.4 million in the six months ended September 30, 2024, due to higher compensation and acquisition costs[152] - The company faces inflationary pressure and supply chain disruptions, which have increased costs and decreased gross margins[139] Cash Flow and Financial Position - Cash, cash equivalents, and restricted cash decreased to $74.8 million as of September 30, 2024, from $92.3 million as of March 31, 2024, a decrease of $17.5 million[173] - Net cash provided by operating activities for the six months ended September 30, 2024, was $16.1 million, compared to cash used in operations of $1.3 million for the same period in 2023[173] - Net cash used in investing activities for the six months ended September 30, 2024, was $33.5 million, primarily due to the acquisition of Megatran[174] - Restricted cash included in long-term assets increased to $1.5 million as of September 30, 2024, from $1.3 million as of March 31, 2024[175] - As of September 30, 2024, the company had an accumulated deficit of $1,064.3 million[167] Tax and Accounting - The company received $3.0 million in payments for Employee Retention Credit (ERC) claims, with the remaining balance expected to be paid during fiscal 2024[141] - The company is evaluating the impact of recent accounting pronouncements, including ASU 2023-07, ASU 2023-09, and ASU 2024-02, on its financial statements[180][181][182]

Exhibit 99.1 AMSC Reports Second Quarter Fiscal Year 2024 Financial Results and Provides Business Outlook Financial Highlights: • Reported Second Quarter Net Income of Nearly $5 Million • Generated Nearly $13 Million of Operating Cash Flow During the Quarter • Increased Revenue by 60% Year Over Year to Above $54 Million Company to host conference call tomorrow, October 31, at 10:00 am ET Ayer, MA – October 30, 2024 – AMSC (Nasdaq: AMSC), a leading system provider of megawatt-scale power resiliency solutions ...

American Superconductor Corporation (AMSC) is scheduled to report its second-quarter fiscal 2024 results on Oct. 30.For the fiscal second quarter, AMSC expects revenues in the band of $50-$55 million. The Zacks Consensus Estimate is pegged at $50.9 million, indicating a rise of 49.7% from the year-ago period’s reported figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.American Superconductor anticipates a fiscal second-quarter non-GAAP loss of not more than 5 cents per share. T ...