American Superconductor Corporation (AMSC) is scheduled to report its second-quarter fiscal 2024 results on Oct. 30.For the fiscal second quarter, AMSC expects revenues in the band of $50-$55 million. The Zacks Consensus Estimate is pegged at $50.9 million, indicating a rise of 49.7% from the year-ago period’s reported figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.American Superconductor anticipates a fiscal second-quarter non-GAAP loss of not more than 5 cents per share. T ...

Core Points - AMSC plans to release its second quarter fiscal year 2024 financial results on October 30, 2024, after market close [1] - AMSC management will hold a conference call on October 31, 2024, at 10:00 a.m. Eastern Time to discuss recent accomplishments, financial results, and business outlook [1] - The conference call can be accessed live or archived through the company's website or by dialing specific phone numbers [2] Company Overview - AMSC is a leading provider of megawatt-scale power resiliency solutions, focusing on optimizing power grid performance and enhancing Navy fleet capabilities [1][3] - The company offers various solutions, including Gridtec™ for grid reliability, Marinetec™ for ship protection and power management, and Windtec® for wind energy cost reduction [3] - AMSC was founded in 1987 and is headquartered near Boston, Massachusetts, with operations across Asia, Australia, Europe, and North America [3]

American Superconductor Corporation (AMSC) has demonstrated remarkable growth, with its stock surging nearly 97% over the past six months. The stock has outpaced the Zacks Electronics - Miscellaneous Components industry, The Technology Select Sector SPDR Fund (XLK) ETF and the S&P 500 index’s rise of 11.2%, 17% and 15.2% over the same period.AMSC stock has also outperformed other players in the Electronics - Miscellaneous Components industry space, including Ballard Power Systems (BLDP) and OSI Systems (OSI ...

Group 1 - American Superconductor (AMSC) has shown a year-to-date return of 122%, significantly outperforming the Computer and Technology sector's average return of 26.5% [2][3] - The Zacks Consensus Estimate for AMSC's full-year earnings has increased by 477.8% over the past three months, indicating improved analyst sentiment and a more positive earnings outlook [2] - AMSC is currently ranked 2 (Buy) in the Zacks Rank system, which emphasizes earnings estimates and revisions [1] Group 2 - AMSC belongs to the Electronics - Miscellaneous Components industry, which consists of 28 companies and is currently ranked 64 in the Zacks Industry Rank, with an average gain of 10.6% this year [3] - Broadcom Inc. (AVGO), another stock in the Computer and Technology sector, has a year-to-date return of 62.6% and is ranked 2 (Buy) in the Zacks Rank [2][3] - The Electronics - Semiconductors industry, to which Broadcom belongs, is ranked 103 and has gained 45.4% so far this year [3]

Core Viewpoint - American Superconductor, a Massachusetts-based company, has seen its shares increase by 276% over the last 12 months, driven by new business ventures and contracts, particularly in military applications [1] Business Overview - American Superconductor specializes in producing specialty wires and electronic equipment primarily for power companies and manufacturers, playing a crucial role in the U.S. power grid as the demand for renewable energy rises [1] - The company has historically struggled financially, but recent contracts, such as a $75 million deal with the Canadian Navy for its Ship Protection Systems, indicate a turning point [2][4] Product and Technology - The Ship Protection Systems (SPS) utilize superconductor technology to reduce a ship's magnetic signature, making it harder to detect by mines, and have been integrated into the U.S. Navy's San Antonio Class ships [3][4] - AMSC's SPS currently accounts for about 10% of total revenue, while the majority of revenue (approximately 75%) comes from improving and maintaining the electrical grid [4] Financial Performance - The company reported annual revenue of $146 million, up from $106 million the previous year, and achieved a non-GAAP net income of $3 million in the latest quarter, marking a significant recovery since its financial struggles began in 2011 [8][9] - AMSC's acquisition of NWL for $61 million is expected to enhance revenue and profitability, particularly due to NWL's established military customer base [9][10] Market Position and Strategy - Despite being a smaller player in a competitive market dominated by larger companies like ABB and General Electric, AMSC is focusing on strategic project bidding to ensure sustainable growth [10] - The management emphasizes building a resilient business model that can withstand various economic and political climates, aiming for steady growth in sectors like renewable energy and military technology [11]

Industry Overview - The U.S. electricity demand is projected to grow at a 2.4% annualized rate through the end of the decade, marking a significant increase compared to the previous decade where growth was zero [1] - This growth will necessitate approximately $50 billion in investment for new power production and additional billions for grid connectivity [1] Quanta Services - Quanta Services is a major player in electricity infrastructure, with a market cap of $44 billion and trailing 12-month revenue of $22 billion [2] - The company has experienced solid growth, particularly following the infrastructure bills passed under the Biden administration [2] - Free cash flow has increased significantly, reaching around $1.5 billion [2] - Quanta's recent acquisition of Cupertino Electric Inc. enhances its position in the rapidly growing AI data center market, which is expected to contribute 0.9% to the overall electricity demand growth [4] Emcor Group - Emcor Group operates in both electrical and non-electrical sectors, providing design, construction, and maintenance services [5] - The electrical division is significant, handling power generation, solar module installation, and electric charging stations [5] - Emcor has seen low-teens growth and free cash flow exceeding $1 billion, with revenue growth accelerating to over 20% in the last quarter [6] - The stock is valued at 25 times trailing earnings and 20 times cash flow, indicating it is not expensive for its growth rate [6] American Superconductor Corp. - American Superconductor Corp. is a small-cap company with a market cap of $920 million, experiencing a revenue increase of about 33% in its recent quarter [7] - The company specializes in power systems and voltage control equipment that enhance grid efficiency [7] - AMSC utilizes advanced materials, such as yttrium barium copper oxide, to create high-temperature superconductors that conduct electricity more efficiently [7] - The company has expanded its military business through the acquisition of NWL, which is expected to provide significant synergies [8]

Core Viewpoint - The Federal Reserve's decision to cut the benchmark lending rate by 50 basis points is expected to benefit small businesses, leading to potential investment opportunities in this sector [1][4]. Small Business Sector - Small businesses have faced significant challenges since the COVID-19 pandemic, including demand issues and supply chain disruptions [3]. - Post-pandemic, inflation and high-interest rates have further strained small businesses, which typically operate on thin profit margins and lack geographical diversification [3]. - A decline in interest rates is crucial for the survival of small-cap stocks, as they rely heavily on affordable credit [4]. Investment Opportunities - Five small-cap companies are identified as having strong growth potential and positive earnings estimates for the remainder of 2024: EZCORP Inc., American Superconductor Corp., Byrna Technologies Inc., Lifeway Foods Inc., and Willdan Group Inc. [2][5]. - These companies have shown significant stock price increases year-to-date, with further upside potential [2]. Company Summaries EZCORP Inc. - EZCORP provides pawn services across the U.S. and Latin America, operating through multiple segments and offering a web-based application for customer transactions [6]. - Expected revenue and earnings growth rates for EZCORP are 7.6% and 8.9%, respectively, with a short-term stock price upside of 47.5% from an average target price of $16 [7]. American Superconductor Corp. - AMSC offers power resiliency solutions globally, focusing on grid and wind segments [8]. - The company anticipates a revenue growth rate of 41.6% and earnings growth of over 100%, with a stock price upside of 38.5% from an average target price of $30.33 [9]. Byrna Technologies Inc. - Byrna develops and sells less-lethal personal security solutions, targeting both consumer and professional markets [10]. - The expected revenue growth rate is 86.3%, with earnings growth exceeding 100%, and a stock price upside of 28.9% from an average target price of $19.42 [11]. Lifeway Foods Inc. - Lifeway produces probiotic-based products, primarily drinkable kefir, and markets them under various brand names [12]. - The company projects revenue and earnings growth rates of 24.8% and 32%, respectively, with a stock price upside of 21.6% from an average target price of $26.50 [13]. Willdan Group Inc. - Willdan provides professional and consulting services in energy and engineering [14]. - The expected revenue and earnings growth rates for Willdan are 29.5% and 20%, respectively, with a stock price upside of 19.2% from an average target price of $49 [15].

The Zacks Electronics - Miscellaneous Components industry is benefiting from the ongoing automation drive, and increased spending by manufacturers of semiconductors, automobiles, machinery and mobile phones. Notably, industry players like Fabrinet (FN) , Novanta (NOVT) , OSI Systems (OSIS) and American Superconductor (AMSC) are well-poised to benefit from the solid adoption of AI and the democratization of IoT techniques, which are transforming robotics, industrial automation, transportation systems, retail ...

Group 1 - American Superconductor (AMSC) is part of the Computer and Technology group, which includes 617 companies and ranks 8 in the Zacks Sector Rank [1] - AMSC has a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions [2] - The Zacks Consensus Estimate for AMSC's full-year earnings has increased by 477.8% in the past quarter, reflecting improved analyst sentiment [2] - AMSC has achieved a year-to-date return of approximately 92.5%, significantly outperforming the average return of 20.6% for Computer and Technology companies [2] - AMSC belongs to the Electronics - Miscellaneous Components industry, which has 28 companies and currently ranks 76 in the Zacks Industry Rank [3] - The Electronics - Miscellaneous Components industry has gained about 3.1% year-to-date, indicating AMSC's superior performance within this group [3] Group 2 - Amphenol (APH), another stock in the Computer and Technology sector, has a year-to-date return of 28.3% [2] - The consensus EPS estimate for Amphenol has increased by 4% over the past three months, and it holds a Zacks Rank of 2 (Buy) [3] - Amphenol is part of the Electronics - Connectors industry, which has 2 stocks and is currently ranked 94, with a year-to-date return of +27.3% [3]

Core Viewpoint - AMSC has updated its financial guidance for the second fiscal quarter of 2024, reflecting the acquisition of NWL, with expected revenues now projected between $50 million and $55 million, significantly higher than the previous guidance of $38 million to $42 million [1][2] Financial Guidance - AMSC anticipates positive cash generation of $1.0 to $4.0 million for the second quarter of fiscal 2024, compared to the previous guidance of breakeven to a positive cash generation of $2.0 million [1] Acquisition Impact - The acquisition of NWL is expected to enhance the quality of AMSC's revenues and earnings, as well as expand its penetration in the industrial market [2] - NWL's expertise in providing power supplies for critical military systems is anticipated to strengthen AMSC's military business and broaden its customer base [2] Company Overview - AMSC specializes in megawatt-scale power resiliency solutions, including Gridtec™, Marinetec™, and Windtec® Solutions, aimed at optimizing power network reliability and efficiency [3] - The company has a global presence with operations in Asia, Australia, Europe, and North America, and focuses on enhancing the performance and reliability of power networks and military fleets [3]