American Superconductor Corp (AMSC) more than doubled the Zacks Consensus Estimate last quarter and just released guidance for next year.
Company Description
American Superconductor has proprietyary technology applied to electric infrastructure. The company’s work can be used to integrate renewable energy sources into the main power grid. Products are used anywhere from generating to end use of electricity.
Crushed Expectations
On Oct 29 American Superconductor reported second-quarter results that included an 85% jump in revenues, to almost $75 million. The gross margin drastically improved to 38.9%, up from 26.5%.
Earnings per share came in at 11 cents, more than double the Zacks Consenus estimate of 5 cents.
Ambitious Projections
In mid November the company reaffirmed guidance for the current year and offered its initial forecast for next year. Analysts are now expecting full-year earnings of 34 cents per share, compared to a 31 cent loss last year.
Projections for next year are forecasting earnings to jump by 140%, to 82 cents per share.
Bullish Comments
In the same report, Greg Yurek, founder and CEO said, “We expect substantial earnings growth in fiscal 2010, driven by increased revenues, greater productivity in all of our operations, and lower manufacturing costs as the result of initiatives we have undertaken in recent quarters.”
The Chart
Shares are not the greatest value, at 29 times next years earnings. However, you can see below that the earnings estimates are consistently rising.
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader serviceZacks Investment Research
