American Superconductor Corporation ((AMSC)) has held its Q4 earnings call. Read on for the main highlights of the call.
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American Superconductor Corporation (AMSC) recently held its earnings call, revealing a strong financial performance characterized by record revenue growth, consistent profitability, and a robust order backlog. The company expanded its global defense presence and maintained a strong cash position, despite noting increased operating expenses. Overall, the positive highlights significantly outweigh the lowlights, indicating a strong positive outlook for the company.
Record Revenue Growth
AMSC achieved a record revenue of $66.7 million in the fourth quarter, marking a 59% increase compared to the previous year. For the total fiscal year, the revenue reached $222.8 million, reflecting a 53% increase from fiscal 2023. This impressive growth underscores the company’s successful strategies and market demand.
Grid and Wind Business Performance
The company’s Grid business revenues grew by 62% to $55.6 million in the fourth quarter, while the Wind business saw a 42% increase, reaching $11.1 million. For the full fiscal year, Grid business revenues were $187.2 million, and Wind business revenues were $35.6 million, highlighting the strong performance across these sectors.
Profitability Achievements
AMSC reported its third consecutive quarter of GAAP profitability and seventh consecutive quarter of non-GAAP profitability. The fourth quarter net income was $1.2 million, with a non-GAAP net income of $4.8 million, showcasing the company’s effective cost management and operational efficiency.
Strong Cash Position
The company ended fiscal year 2024 with $85.4 million in cash, cash equivalents, and restricted cash. AMSC generated $6.3 million in operating cash flow in the fourth quarter and $28.3 million for the full fiscal year, ensuring financial stability and flexibility for future investments.
Significant Order Backlog
AMSC reported strong order bookings of $75 million in the fourth quarter, with a 12-month backlog exceeding $200 million, up from $140 million a year ago. This substantial backlog indicates sustained demand and future revenue potential.
Expansion into Global Defense
The company expanded its defense business by securing a new order from the Royal Canadian Navy and delivering three ship protection systems to the US Navy. This expansion underscores AMSC’s growing influence and capability in the global defense sector.
Increased Operating Expenses
Research and development and SG&A expenses for the fourth quarter increased to $15.6 million from $10.3 million in the previous year, and $54.5 million for the full fiscal year compared to $39.6 million in fiscal 2023. While these increased expenses reflect the company’s investment in growth, they are a point of consideration for future profitability.
Forward-Looking Guidance
During the earnings call, AMSC provided robust guidance, highlighting its significant achievements and expectations for the future. For the first quarter of fiscal 2025, the company expects revenues between $64 million and $68 million, with net income exceeding $1 million. AMSC sees strong growth opportunities in semiconductors, traditional energy, and utilities, with over 70% of its revenue generated from the U.S. market, providing a hedge against changing trade policies.
In conclusion, AMSC’s earnings call presented a strong financial outlook with record revenue growth, consistent profitability, and a robust order backlog. Despite increased operating expenses, the company’s strategic expansions and strong cash position provide a solid foundation for future growth. Investors and stakeholders can look forward to AMSC’s continued success and market influence.