AMSC Gears Up to Report Q1 Earnings: What's in Store for the Stock?

American Superconductor Corporation AMSC is set to report its first-quarter fiscal 2025 results on July 30.

The company expects revenues in the band of $64-$68 million for the first quarter. The Zacks Consensus Estimate for revenues is pegged at $62.1 million for the quarter, suggesting a 61.7% rise from the year-ago quarter’s reported figure.

American Superconductor anticipates first-quarter non-GAAP earnings to exceed 10 cents per share. The consensus mark for earnings stands at 12 cents per share, implying a 50% year-over-year increase. The figure has been revised a penny downward over the past 30 days.

AMSC’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 241.2%.

Let us see how things have shaped up for the upcoming announcement.

Factors to Note Ahead of AMSC’s Q1 Results

American Superconductor’s first-quarter performance is likely to have benefited from the acquisition of NWL Inc. The company acquired NWL in August 2024 in a cash-stock deal worth $56.4 million and expects it to be immediately accretive to its top and bottom lines.

American Superconductor's first-quarter results are expected to benefit from an improved business model, increased bookings and a strengthened balance sheet. The company’s strengthening operational and manufacturing capabilities are likely to have contributed well to its top-line growth in the quarter under review.

Increasing demand for its energy power and ship protection systems is expected to have positively impacted the Grid segment’s performance in the to-be-reported quarter. Its growing focus on expanding U.S. ship platforms is expected to have acted as a tailwind. The consensus estimate for Grid revenues is pegged at $55.6 million, suggesting growth of 71.9% year over year.

Growing shipments of its 2-megawatt and 3-megawatt class turbines to Inox are likely to have bolstered the Wind segment’s performance in the fiscal first quarter. The consensus mark for Wind revenues is pegged at $7.6 million, indicating year-over-year growth of 20%. Strong momentum across renewables, mining and metals, semiconductors and military end-markets is likely to have boosted the company’s performance in the to-be-reported quarter.

However, macroeconomic uncertainties and unfavorable foreign exchange fluctuations are expected to have been concerns.

What Our Model Says About AMSC’s Q1 Earnings

Our proven model does not conclusively predict an earnings beat for American Superconductor this time. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the exact case here.

AMSC carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Meta Platforms META has an Earnings ESP of +2.91% and presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Meta Platforms is set to report second-quarter 2025 results on July 30. The Zacks Consensus Estimate for the second-quarter earnings is pegged at $5.83 per share, revised upward by 5 cents over the past seven days. Estimates for Meta Platforms’ second-quarter EPS indicate year-over-year growth of 13%.

Lam Research LRCX is set to report fourth-quarter fiscal 2025 results on July 30. The stock has an Earnings ESP of +2.71% and presently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Lam Research’s fourth-quarter earnings is pegged at $1.20 per share, which has remained unchanged over the past 60 days. Estimates for Lam Research’s EPS for the fourth quarter suggest a year-over-year increase of 48.2%.

QUALCOMM QCOM is set to report third-quarter fiscal 2025 results on July 30. The stock has an Earnings ESP of +0.60% and presently carries a Zacks Rank #3.

The Zacks Consensus Estimate for QUALCOMM’s third-quarter earnings is pegged at $2.68 per share, which has remained unchanged over the past 60 days. The consensus estimate for QUALCOMM’s third-quarter EPS calls for a year-over-year rise of 15%.

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This article originally published on Zacks Investment Research (zacks.com).

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