Capstone Turbine Corp Second Quarter Earnings Sneak Peek

Capstone Turbine Corporation (NASDAQ:CPST) will unveil its latest earnings on Thursday, November 8, 2012. Capstone Turbine develops, manufactures, markets, and services microturbine technology solutions for use in stationary distributed power generation applications.

Capstone Turbine Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 2 cents per share, a narrower loss from the year-earlier quarter net loss of 3 cents. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month.

Past Earnings Performance: Last quarter, the company fell short of estimates by one cent, coming in at net loss of 3 cents a share versus the estimate of a loss of 2 cents a share. It was the fourth straight quarter of missing estimates.

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A Look Back: In the first quarter, the company’s loss widened to a loss of a $7.8 million (3 cents a share) from a loss of $2.9 million (one cent) a year earlier, missing analyst expectations. Revenue rose 18.7% to $28.8 million from $24.3 million.

Wall St. Revenue Expectations: On average, analysts predict $32 million in revenue this quarter, a rise of 16.6% from the year-ago quarter. Analysts are forecasting total revenue of $135.5 million for the year, a rise of 23.9% from last year’s revenue of $109.4 million.

Stock Price Performance: Between August 9, 2012 and November 2, 2012, the stock price fell 9 cents (-8.3%), from $1.09 to $1. The stock price saw one of its best stretches over the last year between June 28, 2012 and July 5, 2012, when shares rose for five straight days, increasing 10.1% (+10 cents) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 28.9% (-37 cents) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 27.5% over the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.93 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.21 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 9.3% to $44.6 million while assets decreased 4.7% to $86.1 million.

Analyst Ratings: With four analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

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

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