Shares of American Superconductor (AMSC) surged by 20% on Thursday following the company’s impressive third-quarter performance and optimistic demand forecast.
In midday trading, the stock reached $11.73, reflecting an 86% increase over the past three months.
Based in Ayer, Massachusetts, AMSC, a leading power-grid technology company, reported a remarkable 65% increase in revenue, reaching $39.4 million for the quarter. This exceeded both the company’s guidance and the $34 million forecast by analysts.
Furthermore, AMSC significantly reduced its loss to $1.6 million, or 6 cents a share, compared to the $9.6 million loss (34 cents a share) from the same period last year. Analysts had projected a per-share loss of 13 cents.
Daniel McGahn, the Chief Executive of AMSC, attributed these impressive results to strong customer demand, competitive pricing, and a favorable product mix.
Looking ahead, AMSC expects its backlog to fuel future growth as it increased by almost 25% during the quarter.
For the next quarter ending on March 31, AMSC guided revenue in the range of $36 million to $40 million. Analysts had predicted $34.4 million.
Additionally, AMSC projected a fourth-quarter loss not exceeding $3.5 million, or 12 cents per share, while analysts anticipated a loss of 10 cents.
AMSC’s positive performance in Q3 and its promising outlook demonstrate its ability to flourish in the power-grid technology sector.
