Capstone Energy+ (NASDAQ:CEPL) Posts Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Capstone Energy+ (NASDAQ:CEPL) announced its earnings results on Wednesday. The company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.02), Zacks reports. Capstone Energy+ had a negative return on equity of 38.40% and a net margin of 2.66%.

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

• Profitability and cash generation improved despite lower revenue. First-quarter revenue fell 11% year over year to $24.9 million, but gross profit rose 16% to $8.8 million, gross margin expanded to 35% from 27%, and operating cash flow reached $5.4 million.
• Product cost-reduction initiatives are strengthening unit economics, including a reported 57% reduction in the cost of an air-bearing cartridge while also reducing sole-source supply-chain risk. Management also said factory investments are improving productivity and that production capacity could be increased through additional shifts as orders become committed.
• Capstone reported growing interest in behind-the-meter power for data centers, with discussions advancing toward pilots and larger opportunities, but no customer agreement has yet been signed. Management said the pipeline is growing, though customer capital approvals and power-purchase agreements are taking longer than expected.
• Rental revenue declined sharply because of lower fleet utilization amid oil-price and geopolitical uncertainty, while parts and service margins fell due to higher warranty-related claims and costs.
• The company has $25.3 million of exit notes maturing in December 2026 and is pursuing refinancing or repayment options. Management said it does not plan to extend the Goldman note, leaving execution of the refinancing as an important near-term financial consideration.

Capstone Energy+ Stock Up 8.7%

CEPL traded up $0.66 on Wednesday, hitting $8.26. 675,159 shares of the company’s stock were exchanged, compared to its average volume of 292,961. Capstone Energy+ has a fifty-two week low of $1.68 and a fifty-two week high of $14.20. The stock has a market cap of $268.95 million, a PE ratio of -2.59 and a beta of 1.61.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the stock. Zacks Research raised shares of Capstone Energy+ to a “hold” rating in a research note on Tuesday, July 14th. BWS Financial assumed coverage on shares of Capstone Energy+ in a report on Monday, July 13th. They set a “buy” rating and a $20.00 price objective on the stock. Wall Street Zen raised shares of Capstone Energy+ from a “sell” rating to a “hold” rating in a report on Saturday. Finally, Weiss Ratings lowered shares of Capstone Energy+ from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, August 3rd. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $20.00.

Capstone Energy+ Company Profile

Capstone Green Energy Corporation provides carbon reduction and on-site resilient green energy solutions. Capstone Green Energy Corporation, formerly known as Capstone Turbine Corporation, is based in VAN NUYS, CA.