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What's in Store for American Superconductor (AMSC) Q3 Earnings?

Zacks Equity Research

American Superconductor Corporation’s AMSC fiscal third-quarter 2019 results are likely to reflect strength in its Grid business.

For the fiscal third quarter, the company expects revenues between $14 million and $17 million. The Zacks Consensus Estimate for sales is pegged at $15.4 million.

Further, non-GAAP loss is pegged at 31 cents per share. The consensus mark for loss per share is pegged at 30 cents per share.

The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters by 36.19%, on average.

American Superconductor Corporation Price and EPS Surprise

American Superconductor Corporation Price and EPS Surprise

American Superconductor Corporation price-eps-surprise | American Superconductor Corporation Quote

Factors to Consider

American Superconductor’s well-performing Grid business is likely to have driven the fiscal third-quarter performance courtesy of strengthening D-VAR shipments to industrial and renewable applications.

D-VAR products that connect wind farms to the transmission grid are expected to have gained momentum in the renewable field during the to-be-reported quarter.

Further, these products aid in stabilizing electrical power in semiconductor manufacturing. This is likely to have aided the company’s momentum across sensitive industrial operations in the fiscal third quarter.

Additionally, robust VVO products are likely to have benefited the company in gaining traction among the utility customers in the quarter under review, which in turn is expected to have driven Grid revenues.

Further, accelerating REG revenues on the back of REG deployment project are anticipated to have contributed to the fiscal third-quarter performance.

Apart from these, American Superconductor’s strengthening presence in India on the back of its 3-megawatt class product, is likely to have benefited its performance in the quarter under review.

Moreover, its strengthening relationship with Inox in India owing to its 2-megawatt onshore product is expected to get reflected in the fiscal third quarter results.

However, sluggishness in the company’s Wind business is likely to have affected the fiscal third-quarter performance.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for American Superconductor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

American Superconductor has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are some stocks you may consider, as our proven model shows that these have the right combination of elements to post an earnings beat this quarter.
Perion Network Ltd. PERI has an Earnings ESP of +22.58% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Five9, Inc. FIVN has an Earnings ESP of +1.02% and a Zacks Rank #2.

Bruker Corporation BRKR has an Earnings ESP of +0.86% and a Zacks Rank #2.

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