American Superconductor shares rise on strong Q3 results

Published 06/02/2025, 18:16
© Reuters.

Investing.com -- Shares of American Superconductor (NASDAQ: NASDAQ:AMSC) surged 34% following the company’s release of its third-quarter earnings, which exceeded profit expectations and showcased significant revenue growth compared to the same period last year.

American Superconductor reported third-quarter earnings per share (EPS) of $0.16, surpassing the analyst estimate of $0.07 by $0.09. Revenue for the quarter was $61.4 million, which also beat the consensus estimate of $56.03 million. The company’s strong performance is attributed to both organic growth and the acquisition of NWL, Inc.

Comparing year-over-year figures, the company’s revenue increased by 56%, rising from $39.4 million in the third quarter of the previous fiscal year. Net income for the quarter stood at $2.5 million, or $0.07 per share, a significant improvement from the net loss of $1.6 million, or $0.06 per share, reported for the same quarter of fiscal 2023.

Looking forward, American Superconductor has provided guidance for the fourth quarter of 2025, anticipating EPS of $0.07, which is slightly below the consensus estimate of $0.08. However, the company expects revenue to be in the range of $59-63 million, with the consensus sitting at $59.167 million.

Daniel P. McGahn, Chairman, President, and CEO of American Superconductor, commented on the company’s performance, stating, "AMSC delivered the best quarterly results in years. Fiscal third quarter revenue surpassed $60 million, that’s revenue growth of 56% when compared to the same period last year, and net income exceeded $2 million, making it our second consecutive quarter of reporting net income." He emphasized the company’s diverse bookings and strengthened balance sheet, which he believes will allow AMSC to seize opportunities in new markets and extend its customer reach.

The company’s cash position remained solid, with cash, cash equivalents, and restricted cash totaling $80.0 million as of December 31, 2024. This figure is up from $74.8 million at the end of the previous quarter.

Investors responded positively to the robust earnings report and the company’s optimistic outlook, as reflected in the stock’s significant rise during the trading session.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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