Capstone Turbine Corp Earnings Cheat Sheet: Strong Margins Continue

Capstone Turbine Corporation (NASDAQ:CPST) climbed to a profit in the second quarter and beat Wall Street’s expectations in the process. Capstone Turbine 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 Second Quarter

Results: Reported a profit of $1.3 million (0 cents per diluted share) in the quarter. Capstone Turbine Corporation had a net loss of $1.9 million or a loss one cent per share in the year earlier quarter.

Revenue: Rose 45.2% to $27.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CPST beat the mean analyst estimate of a loss of 2 cents per share. Analysts were expecting revenue of $27.1 million.

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 41.8%, with the biggest boost coming in the first 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 5.4 percentage points to 6.1% from the year earlier quarter. Over that span, margins have grown on average 9.2 percentage points per quarter on a year-over-year basis.

The company’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $2.9 million in the first quarter, a loss of $28.8 million in the fourth quarter of the last fiscal year and a loss of $8.1 million in the third of the last fiscal year.

The company beat estimates last quarter after being in line with expectations in the first quarter with a loss of 3 cents per share.

Looking Forward: Expectations for the company’s next quarter results are looking up. The average estimate for the third quarter is a loss of one cent per share, up from a loss of 2 cents a month ago. Down from a loss of 6 cents per share ninety days ago, the average estimate for the fiscal year is now a loss of 8 cents.

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).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)