AMSC Q3 revenue rises 21%, driven by Comtrafo acquisition

Overview

• Power resiliency solutions firm's Q3 revenue rose over 20%, beating analyst expectations

• Record profitability driven by discrete tax benefit

• Company completed acquisition of Comtrafo, contributing to revenue growth

Outlook

• AMSC expects Q4 revenue to exceed $80 mln

• Company forecasts Q4 net income over $3 mln, or $0.07 per share

• AMSC anticipates Q4 non-GAAP net income over $8 mln, or $0.17 per share

Result Drivers

• ORGANIC GROWTH AND ACQUISITION - Revenue increase driven by organic growth and acquisition of Comtrafo, which contributed to Q3 results

• TAX BENEFIT - Record profitability attributed to a $113.1 million tax benefit from the release of a valuation allowance on a deferred tax asset

• STRONG GROSS MARGIN - Gross margin exceeded 30%, reflecting strong operational performance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for American Superconductor Corp is $57.50, about 91.7% above its February 3 closing price of $30.00

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 74 three months ago

Press Release: ID:nGNX3lrw6G

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