AMSC Stock Before Q2 Earnings: Buy Now or Wait for Results?

American Superconductor Corporation AMSC is scheduled to report its second-quarter fiscal 2024 results on Oct. 30.For the fiscal second quarter, AMSC expects revenues in the band of $50-$55 million. The Zacks Consensus Estimate is pegged at $50.9 million, indicating a rise of 49.7% from the year-ago period’s reported figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.American Superconductor anticipates a fiscal second-quarter non-GAAP loss of not more than 5 cents per share. The consensus mark is projected at earnings of 4 cents per share, unchanged over the past 60 days. The company reported break-even earnings in the year-ago quarter.Image Source: Zacks Investment ResearchWe note that American Superconductor’s bottom line surpassed the Zacks Consensus Estimate in each of the four trailing quarters, the surprise being 169.8%, on average.American Superconductor Corporation Price and EPS Surprise American Superconductor Corporation price-eps-surprise | American Superconductor Corporation QuoteEarnings Whispers for AMSCOur proven model does not conclusively predict an earnings beat for American Superconductor this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.Though AMSC carries a Zacks Rank #3, it has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Factors Likely to Influence AMSC’s Quarterly PerformanceAmerican Superconductor’s second-quarter performance is likely to have benefited from the recent acquisition of NWL Inc. The company acquired NWL in August 2024 in a cash-stock deal worth $56.4 million and expects it to be immediately accretive to its top and bottom lines. Excluding the NWL business, AMSC had forecasted second-quarter revenues in the range of $38-$42 million.American Superconductor's second-quarter results are expected to benefit from an improved business model, increased bookings and a strengthened balance sheet. The company’s strengthening operational and manufacturing capabilities are likely to have contributed well to its top-line growth in the quarter under review.Increasing demand for its energy power and ship protection systems is expected to have positively impacted the Grid segment’s performance in the to-be-reported quarter. Its growing focus on expanding U.S. ship platforms is expected to have acted as a tailwind. The consensus estimate for Grid revenues is pegged at $44.5 million, suggesting growth of 55.9% year over year.Growing shipments to Inox of both its 2-megawatt and 3-megawatt class turbines are likely to have bolstered the Wind segment’s performance in the fiscal second quarter. The consensus mark for Wind revenues is pegged at $6.8 million, indicating year-over-year growth of 23%. Strong momentum across renewables, mining and metals, semiconductors and military end-markets is likely to have boosted the company’s performance in the to-be-reported quarter.However, macroeconomic uncertainties and unfavorable foreign exchange fluctuations are expected to have been concerns.AMSC Stock Price Performance & ValuationAmerican Superconductor shares have outperformed the Zacks Electronics - Miscellaneous Components industry as well as the broader tech sector in the year-to-date period. The stock has also underperformed its peers, including Ballard Power Systems BLDP, OSI Systems OSIS and BWX Technologies BWXT.YTD Price Return PerformanceImage Source: Zacks Investment ResearchLet us look at the value American Superconductor offers investors at current levels. Currently, AMSC is trading at a premium, with a forward 12-month price-to-sales (P/S) of 3.9X compared with the industry’s 2.47X. Its peers, Ballard Power Systems, OSI Systems and BWX Technologies, have a forward 12-month P/S of 4.21X, 1.38X and 4.08X, respectively.Image Source: Zacks Investment ResearchInvestment Thesis for American Superconductor StockAmerican Superconductor presents a compelling investment opportunity due to its strong positioning in the renewable energy and power resiliency markets. AMSC has been expanding its portfolio across diverse high-growth sectors, including grid interconnections, wind energy systems and marine power solutions. The company’s robust grid solutions, such as D-VAR and REG systems, are highly relevant as global demand for power grid modernization rises, especially with increased renewable energy integration.American Superconductor’s acquisition of NWL broadened its footprint into the industrial and military power supply markets, enhancing product depth and market reach. This acquisition, coupled with expanding customer relationships, strengthens AMSC's financial outlook. With a focus on renewable energy, grid resilience and defense solutions, the company is poised for sustained growth in today’s energy-conscious and security-focused market.Conclusion: Hold AMSC Stock for NowAmerican Superconductor’s growth story is far from over. Its leadership in alternative energy, coupled with strong product offerings and strategic partnerships, positions the company for continued success. Its robust financial performance and increasing market demand bode well for long-term prospects.Despite these positives, American Superconductor faces near-term challenges, including stretched valuations and potential pressures on margins as it invests in expanding its market reach. While the long-term growth outlook remains promising, these factors suggest that a hold approach is prudent at present. Monitoring how the company manages costs and capitalizes on its NWL acquisition for growth in industrial power supply will provide better insight into its capacity for sustained profitability, making patience key for existing investors.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Superconductor Corporation (AMSC): Free Stock Analysis Report OSI Systems, Inc. (OSIS): Free Stock Analysis Report Ballard Power Systems, Inc. (BLDP): Free Stock Analysis Report BWX Technologies, Inc. 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