Company Performance - American Superconductor (AMSC) reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and showing a significant increase from $0.03 per share a year ago, representing an earnings surprise of 128.57% [1] - The company achieved revenues of $61.4 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 8.01% and up from $39.35 million year-over-year [2] - Over the last four quarters, AMSC has consistently surpassed consensus EPS and revenue estimates [2] Market Outlook - The immediate price movement of AMSC's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - AMSC shares have increased by approximately 2.8% since the beginning of the year, slightly outperforming the S&P 500's gain of 2.7% [3] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $59.05 million, and for the current fiscal year, it is $0.50 on revenues of $210.7 million [7] - The estimate revisions trend for AMSC is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Electronics - Miscellaneous Components industry, to which AMSC belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of AMSC's stock may be influenced by the overall outlook for the industry [8]

Financial Performance - Revenues for Q3 FY24 were $61.4 million, a 56% increase from $39.4 million in Q3 FY23, driven by organic growth and the acquisition of NWL, Inc.[2] - Net income for Q3 FY24 was $2.5 million, or $0.07 per share, compared to a net loss of $1.6 million, or $0.06 per share, in Q3 FY23[3] - Non-GAAP net income for Q3 FY24 was $6.0 million, or $0.16 per share, up from $0.9 million, or $0.03 per share, in the same period last year[3] - Net income for the nine months ended December 31, 2024, was $4,828 thousand, a significant improvement from a net loss of $9,532 thousand in the same period of 2023[16] - Non-GAAP net income for the three months ended December 31, 2024, was $6,047 thousand, compared to $881 thousand in the same period of 2023, indicating a year-over-year increase of 586.5%[17] Cash and Assets - Cash, cash equivalents, and restricted cash totaled $80.0 million as of December 31, 2024, compared to $74.8 million at the end of Q3 FY23[4] - The company reported a cash, cash equivalents, and restricted cash balance of $80,040 thousand at the end of the period, up from $25,025 thousand a year earlier[16] - Total assets increased to $310,278 thousand as of December 31, 2024, compared to $232,771 thousand on March 31, 2024, reflecting a growth of 33.2%[15] - Cash flows from operating activities generated $21,995 thousand for the nine months ended December 31, 2024, compared to a cash outflow of $97 thousand in the same period of 2023[16] Future Projections - AMSC expects Q4 FY24 revenues to be between $59.0 million and $63.0 million, with a projected net loss not exceeding $1.0 million, or $0.03 per share[7] - The company expects a non-GAAP net income of $2,500 thousand for the quarter ending March 31, 2025, with a non-GAAP net income per share of $0.07[18] Operational Highlights - The company generated nearly $6 million in operating cash flow during Q3 FY24[6] - Bookings and backlog during the quarter remained robust, indicating strong future demand[5] - AMSC's Grid segment generated $52.3 million in revenue for Q3 FY24, while the Wind segment contributed $9.1 million[13] - The company reported a gross margin of $16.3 million for Q3 FY24, compared to $10.0 million in the same period last year[13] Expenses and Liabilities - Research and development expenses for Q3 FY24 were $3.0 million, compared to $2.2 million in Q3 FY23[13] - Total current liabilities rose to $104,425 thousand as of December 31, 2024, up from $78,808 thousand on March 31, 2024, representing a 32.5% increase[15] - Stock-based compensation expense for the nine months ended December 31, 2024, was $4,933 thousand, compared to $3,608 thousand in the same period of 2023, reflecting a 36.7% increase[17] Changes in Fair Value - The company reported a change in fair value of contingent consideration of $6,682 thousand for the nine months ended December 31, 2024, compared to $3,052 thousand in the same period of 2023[17]

Financial Performance - Total revenues increased 56% to $61.4 million for the three months ended December 31, 2024, and increased 51% to $156.2 million for the nine months ended December 31, 2024, compared to $39.4 million and $103.6 million for the same periods in 2023[140]. - The Grid business segment accounted for 85% of total revenues for the three months ended December 31, 2024, with revenues increasing 56% to $52.3 million, while the Wind segment accounted for 15% with revenues increasing 58% to $9.1 million[141][142]. - Net income was $2.5 million for the three months ended December 31, 2024, and $4.8 million for the nine months ended December 31, 2024, compared to net losses of $1.6 million and $9.5 million for the same periods in 2023[154]. - Non-GAAP net income was $6.0 million for the three months ended December 31, 2024, and $19.3 million for the nine months ended December 31, 2024, compared to $0.9 million and a non-GAAP net loss of $1.3 million for the same periods in 2023[156]. - Gross margin improved to 27% and 28% for the three and nine months ended December 31, 2024, respectively, compared to 25% and 24% for the same periods in 2023, driven by higher revenues and a favorable product mix[143]. Business Segments - The company operates under two business segments: Grid and Wind, focusing on power resiliency solutions and advanced power electronics[132]. - The Grid business segment provides transmission planning services and sells ship protection products to the U.S. Navy, enhancing power grid efficiency and reliability[133]. - The Wind business segment supplies advanced power electronics and control systems to wind turbine manufacturers, with a design portfolio including drivetrains of 2 megawatts and higher[133]. Acquisitions and Investments - The acquisition of Megatran was completed for an aggregate consideration of $61.4 million, including a cash payment of $25.0 million at closing and additional payments totaling $8.3 million[137]. - Net cash used in investing activities for the nine months ended December 31, 2024, was $34.1 million, primarily due to the acquisition of Megatran[165]. - The company acquired Megatran for an aggregate consideration of $61.4 million, which included a cash purchase price of $25.0 million and additional stock and cash payments[162]. Liquidity and Capital Resources - As of December 31, 2024, the company had cash, cash equivalents, and restricted cash totaling $80.0 million, a decrease of $12.3 million from $92.3 million as of March 31, 2024[164]. - The company believes it has sufficient liquidity to fund operations and capital expenditures for the next twelve months, having raised $65.2 million in February 2024[170]. - The company filed a shelf registration statement allowing it to offer and sell up to $250 million of securities to fund future capital needs[160]. - The company continues to monitor expenses and may reduce operating and capital spending to enhance liquidity if required[170]. Tax Credits - The company reported a total of $3.3 million in payroll tax credits recognized in the quarter ended March 31, 2023, related to the Employee Retention Credit under the CARES Act[135]. - The company anticipates receiving the remaining balance of the payroll tax credits during fiscal 2025[135]. Research and Development - Research and development expenses increased 36% to $3.0 million for the three months ended December 31, 2024, and 39% to $7.9 million for the nine months ended December 31, 2024, primarily due to the addition of Megatran R&D expenses[144]. Financial Challenges - The company recorded a loss of $3.4 million related to the change in fair value of contingent consideration for the acquisition of NEPSI during the nine months ended December 31, 2024[147]. - As of December 31, 2024, the company had an accumulated deficit of $1,061.8 million[158]. - The condensed consolidated statements of comprehensive loss for the three and nine months ended December 31, 2024, and 2023 highlight the company's financial challenges[187]. Regulatory and Compliance - The report was signed by John W. Kosiba, Jr., the Chief Financial Officer, indicating accountability for the financial disclosures[190]. - The filing date of the report is February 5, 2025, which is relevant for regulatory compliance[191].

Third Quarter Financial Highlights: • Increased Revenue by 56% Year Over Year to Above $60 Million• Net Income of over $2 Million• Generated nearly $6 Million of Operating Cash Flow Company to host conference call tomorrow, February 6, at 10:00 am ET AYER, Mass., Feb. 05, 2025 (GLOBE NEWSWIRE) -- AMSC (Nasdaq: AMSC), a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid™ and protect and expand the capability and resiliency of ou ...

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AYER, Mass., Jan. 30, 2025 (GLOBE NEWSWIRE) -- AMSC® (NASDAQ: AMSC), a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid™ and protect and expand the capability of our Navy’s fleet, announced today that it plans to release its third quarter fiscal year 2024 financial results after the market close on Wednesday, February 5, 2025. In conjunction with this announcement, AMSC management will participate in a conference call with inve ...

American Superconductor Corporation (AMSC) is expected to report its third-quarter fiscal 2024 results on Jan. 22. For the fiscal third quarter, AMSC expects revenues in the band of $55-$60 million. The Zacks Consensus Estimate is pegged at $56.85 million, indicating a rise of 44.5% 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 third-quarter non-GAAP loss of not more than 5 cents per share. The ...

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]

Core Viewpoint - American Superconductor Corporation (AMSC) is facing scrutiny regarding its premium stock valuation despite its strong performance in the energy technology sector, particularly in renewable energy and grid modernization [1][4][18]. Valuation Metrics - AMSC's stock is trading at a forward 12-month price-to-earnings (P/E) ratio of 46.87, significantly higher than the Zacks Electronics - Miscellaneous Components industry's average of 21.14. Its forward 12-month price-to-sales (P/S) ratio stands at 4.1, compared to the industry's 2.59 [2]. Stock Performance - The stock has experienced a remarkable increase of 123.9% in share price year-to-date, outperforming both the industry and major benchmarks like the S&P 500 and the Technology Select Sector SPDR Fund (XLK) ETF [5][9]. Competitive Positioning - AMSC has outperformed competitors in the Electronics - Miscellaneous Components industry, such as Ballard Power Systems, which has seen a decline of 58.8% year-to-date, while OSI Systems has increased by 35.8% [6]. Market Drivers - The company's strong positioning in renewable energy and high-growth markets, including advanced grid interconnection systems and high-temperature superconductor cables, is a primary driver of its performance [10][14]. Contract Wins - AMSC has secured significant contracts, including a $75 million agreement with the Royal Canadian Navy and a $12 million order from InoxWinds, enhancing investor confidence and revenue stability [11]. Strategic Initiatives - The recent acquisition of NWL allows AMSC to expand into military and industrial markets, aligning with rising global defense budgets and positioning the company for growth in the defense sector [12]. Product Diversification - AMSC continues to diversify its offerings, with high demand for its D-VAR Systems for grid stability and advanced wind turbine designs, ensuring a steady pipeline of opportunities [13]. Financial Performance - In the second quarter of fiscal 2025, AMSC reported a 60.3% year-over-year increase in revenues, reaching $54.5 million, indicating strong financial resilience [16]. Sales and Earnings Estimates - The Zacks Consensus Estimate projects revenues of $210.70 million for the current fiscal year (ending March 2025) and $251.90 million for the next fiscal year (ending March 2026), with year-over-year growth estimates of 44.67% and 19.55%, respectively [17]. Conclusion - Despite concerns over premium valuation, AMSC's strong fundamentals, market presence, and strategic initiatives in renewable energy and defense spending support a hold recommendation for investors [18][19].

Building a portfolio with stocks that have robust liquidity levels will likely work for investors seeking healthy returns. Liquidity measures a company’s capability to meet its 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) , Ubiquiti Inc. (UI) , Sezzle Inc. (SEZL) and monday.com Ltd. (MNDY) to their portfolios to boost returns.H ...