American Superconductor (AMSC) Beats Estimates, Raises Guidance But Selling On News

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09:46:52 am on February 2, 2010

American Superconductor (AMSC) reported another strong quarter this morning, handily beating Wall St estimates once again.  The company reported a  Q3 EPS of $0.20 which beat estimates by .06/share on revenues of $80.7 million which was also better than what Wall St was expecting.  That’s a 100% increase in revenues from the year ago quarter and a turn to profitability (reported a loss of -.18/share in year ago quarter), but the stock is selling on the news this morning.  That isn’t surprising given the action in the market right now.  Most companies that are posting great results are selling on the news, indicating this market is tired.  Not to mention AMSC is a very pricey stock.

CEO Greg Yurek commented on the quarter, saying, “We delivered better-than-expected financial results for the third fiscal quarter as wind-related revenues continued to grow and our cost management initiatives provided additional bottom-line benefits.  With several wind turbine manufacturing customers in volume production, many others set to begin production over the next 12 months and new power grid orders continuing to be closed, the foundation has been set for further growth in fiscal 2010 and beyond.”

Looking ahead, the company is raising its full year guidance for both revenues and income.  They now expect fiscal year 2009 to bring in revenues of $312 – $315 (up from previous guidance of $300 – $310.  They are increasing their non GAAP net income forecast from $27 – $29 million to $29.5 – $30.5 million (.65 – .67/share) and expect to be cash flow positive.  For 2010, the company expects revenues will exceed $400 million and non GAAP net income to exceed $1.15/share.

Shares of AMSC are down about 7% in early trading.

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