Capstone Turbine Corp Earnings Cheat Sheet: Margins Keep Growing

Capstone Turbine Corporation (NASDAQ:CPST) reported a drop to a loss in the first quarter driven by higher costs. Capstone Turbine Corporation develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications.

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Capstone Turbine Earnings Cheat Sheet for the First Quarter

Results: Swung to a loss of $2.9 million (one cent per diluted share) in the quarter. Capstone Turbine Corporation had a net income of $392,000 or 0 cents per share in the year earlier quarter.

Revenue: Rose 51.3% to $24.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CPST reported an adjusted net loss of 3 cents per share. By that measure, the company fell in line with the mean analyst estimate of a loss of 3 cents per share. It fell short of the average revenue estimate of $25.3 million.

Quoting Management: “In the first quarter of Fiscal 2012 Capstone set a company high for top line revenue with revenues up 51% year over year. Gross margin, direct material costs and backlog all continue to improve,” said Darren Jamison, Capstone’s President and Chief Executive Officer. “We received $27.9 million in new orders for the quarter, which when combined with the $42M last quarter gives the company a record $71 million in new product over the last two quarters. The company now has $115 million in backlog to execute against over the next 12 months.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 36.1%, with the biggest boost coming in the most recent quarter when revenue rose 51.3% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 5.3 percentage points to 2.1% from the year earlier quarter. Over that span, margins have grown on average 11.6 percentage points per quarter on a year-over-year basis.

The company fell in line with estimates last quarter after missing forecasts in the previous quarter with a loss of -12 cents versus a mean estimate of a loss of 3 cents per share.

Competitors to Watch: Ocean Power Tech., Inc. (NASDAQ:OPTT), Broadwind Energy Inc. (NASDAQ:BWEN), Dresser-Rand Group Inc. (NYSE:DRC), Generac Holdings Inc. (NYSE:GNRC).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)

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