Broadwind Energy (NASDAQ:BWEN) Issues Earnings Results, Misses Expectations By $0.02 EPS

Broadwind Energy (NASDAQ:BWEN) announced its quarterly earnings data on Tuesday. The industrial products company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.02), FiscalAI reports. Broadwind Energy had a negative return on equity of 1.53% and a net margin of 3.90%.The firm had revenue of $8.19 million for the quarter, compared to the consensus estimate of $34.97 million.

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

• Strong second-quarter performance: Revenue rose 67% year over year to $24.3 million, while adjusted EBITDA improved to a $1.6 million profit from a $1.1 million loss. Both Gearing and Industrial Solutions posted higher revenue and profitability.
• Order momentum remained robust, with total backlog for the continuing Gearing and Industrial Solutions businesses up 93% year over year and a 1.5x book-to-bill ratio. Gearing orders increased 138% to $16.2 million, while Industrial Solutions orders reached a record $17.2 million.
• Management expects sustained demand from power generation, natural-gas turbines, data-center electricity needs, grid modernization, and electrification. The company is expanding capacity, adding engineering and manufacturing resources, and exploring selective bolt-on acquisitions in precision manufacturing, critical infrastructure, defense, and aerospace.
• Broadwind has not reinstated financial guidance, citing uncertainty until the wind-tower wind-down is completed in the third quarter. Management also cautioned that Industrial Solutions’ exceptionally high second-quarter EBITDA margin should return to more typical levels, with product mix potentially creating some margin pressure.
• The company ended the quarter with more than $40 million of cash and credit-facility availability, or $31.3 million after minimum-availability restrictions, alongside significantly reduced debt. This provides flexibility for organic investment and disciplined acquisitions.

Broadwind Energy Stock Up 1.9%

Shares of NASDAQ:BWEN opened at $5.44 on Thursday. Broadwind Energy has a 52 week low of $1.88 and a 52 week high of $5.70. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.65 and a current ratio of 1.92. The company has a market capitalization of $127.32 million, a PE ratio of 23.65 and a beta of 1.78. The company has a 50 day moving average price of $4.54 and a two-hundred day moving average price of $3.33.

Hedge Funds Weigh In On Broadwind Energy

Several institutional investors and hedge funds have recently made changes to their positions in BWEN. XTX Topco Ltd acquired a new position in Broadwind Energy in the second quarter valued at about $25,000. Virtu Financial LLC bought a new position in shares of Broadwind Energy during the 3rd quarter valued at about $31,000. Goldman Sachs Group Inc. bought a new position in shares of Broadwind Energy during the 1st quarter valued at about $25,000. LPL Financial LLC grew its position in shares of Broadwind Energy by 62.0% in the 4th quarter. LPL Financial LLC now owns 31,637 shares of the industrial products company’s stock valued at $90,000 after purchasing an additional 12,102 shares during the period. Finally, Mariner LLC grew its position in shares of Broadwind Energy by 17.1% in the 4th quarter. Mariner LLC now owns 36,120 shares of the industrial products company’s stock valued at $102,000 after purchasing an additional 5,268 shares during the period. Institutional investors and hedge funds own 33.27% of the company’s stock.

Analysts Set New Price Targets

A number of research firms have commented on BWEN. Weiss Ratings raised shares of Broadwind Energy from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, June 1st. Wall Street Zen downgraded Broadwind Energy from a “hold” rating to a “sell” rating in a research note on Tuesday, July 28th. Finally, Roth Capital restated a “buy” rating and issued a $6.50 price target (up from $5.00) on shares of Broadwind Energy in a research report on Wednesday. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $6.25.

Broadwind Energy Company Profile

Broadwind Energy, Inc (NASDAQ: BWEN) is an engineering and manufacturing company focused on the design, production and service of heavy industrial equipment for energy infrastructure and related markets. The company’s offerings include custom-engineered gearboxes, couplings, hydrodynamic drives and utility-scale wind turbine towers. In addition to new equipment, Broadwind Energy provides aftermarket repair, refurbishment and testing services to support the long-term operation of energy and industrial assets.

The company operates through two principal segments.