Broadwind Energy (NASDAQ:BWEN) Posts Quarterly Earnings Results, Misses Expectations By $0.07 EPS

Broadwind Energy (NASDAQ:BWEN) posted its earnings results on Thursday. The industrial products company reported ($0.10) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.07), FiscalAI reports. The firm had revenue of $22.25 million during the quarter, compared to the consensus estimate of $23.88 million. Broadwind Energy had a negative return on equity of 1.54% and a net margin of 3.90%.

Here are the key takeaways from Broadwind Energy’s conference call:

• Third-quarter revenue rose 48% to $22.3 million, while adjusted EBITDA improved to $0.5 million from a $1.2 million loss a year earlier. Both reporting segments increased sales, and Gearing returned to operating profitability.
• Orders increased 13% to $33.7 million, with power-generation-related orders accounting for more than 70% of the total. Industrial Solutions set records for orders and backlog, while Gearing reported its fifth consecutive quarter of backlog growth and said fourth-quarter orders were on pace to exceed Q3 levels.
• Broadwind completed its acquisition of MCM, expanding into domestic electrical transmission and distribution; management expects the higher-margin business to be immediately accretive. The acquisition is intended to diversify the company’s critical-infrastructure exposure and support its growth strategy.
• After the acquisition and credit-facility amendment, pro forma cash and facility availability is approximately $16.5 million, compared with nearly $40 million before the deal, with total debt of $13 million. Management aims to reduce net leverage below 2.0x through earnings growth and debt repayment.
• Industrial Solutions expects revenue to remain above historical levels, but management said low-double-digit adjusted EBITDA margins are a more appropriate expectation than the high-teens margins of recent quarters. It said existing space and the option to add a second shift provide room to meet near-term customer growth, though hiring remains a challenge.

Broadwind Energy Stock Performance

Shares of NASDAQ:BWEN traded down $0.48 during midday trading on Thursday, reaching $2.50. The company had a trading volume of 561,195 shares, compared to its average volume of 492,596. The stock has a market cap of $59.12 million, a P/E ratio of 10.87 and a beta of 1.83. The company’s 50 day moving average price is $3.67 and its 200 day moving average price is $3.50. The company has a current ratio of 2.72, a quick ratio of 1.73 and a debt-to-equity ratio of 0.07. Broadwind Energy has a 52-week low of $1.89 and a 52-week high of $5.70.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. Wall Street Zen cut shares of Broadwind Energy from a “hold” rating to a “sell” rating in a report on Saturday, September 5th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Broadwind Energy in a research report on Thursday, August 27th. Finally, Roth Capital reiterated a “buy” rating and issued a $6.50 price objective (up from $5.00) on shares of Broadwind Energy in a research note on Wednesday, August 12th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $6.25.

About Broadwind Energy

Broadwind Energy, Inc. is a precision manufacturer that produces structures, equipment and components for the wind energy, clean technology and other industrial markets. The company provides engineered manufacturing solutions for customers that require large-scale fabrication, machining, assembly and related services. Broadwind’s product and service offerings include wind turbine towers, heavy fabrications, industrial equipment and precision gearing. Its manufacturing capabilities include welding, machining, gear manufacturing, assembly, engineering and supply-chain support.