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

Broadwind Energy (NASDAQ:BWENGet Free Report) released its quarterly earnings results on Tuesday. The industrial products company reported ($0.03) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.02), FiscalAI reports. The firm had revenue of $8.19 million during the quarter, compared to analyst estimates of $34.97 million. Broadwind Energy had a negative return on equity of 2.05% and a net margin of 3.30%.

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 Price Performance

Shares of BWEN traded down $0.08 during mid-day trading on Wednesday, reaching $5.26. 523,911 shares of the company’s stock were exchanged, compared to its average volume of 569,208. The company has a quick ratio of 0.65, a current ratio of 1.92 and a debt-to-equity ratio of 0.11. Broadwind Energy has a 52-week low of $1.88 and a 52-week high of $5.70. The company has a market cap of $123.08 million, a price-to-earnings ratio of 23.91 and a beta of 1.78. The company has a 50-day simple moving average of $4.51 and a two-hundred day simple moving average of $3.31.

Analyst Upgrades and Downgrades

Several research firms have weighed in on BWEN. Wall Street Zen lowered Broadwind Energy from a “hold” rating to a “sell” rating in a report on Tuesday, July 28th. Weiss Ratings upgraded shares of Broadwind Energy from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, June 1st. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, Broadwind Energy has an average rating of “Moderate Buy” and an average price target of $6.00.

Read Our Latest Analysis on BWEN

Institutional Investors Weigh In On Broadwind Energy

Large investors have recently bought and sold shares of the stock. Goldman Sachs Group Inc. acquired a new position in shares of Broadwind Energy in the first quarter worth $25,000. XTX Topco Ltd purchased a new stake in shares of Broadwind Energy in the second quarter valued at $25,000. Virtu Financial LLC acquired a new stake in shares of Broadwind Energy during the third quarter valued at $31,000. LPL Financial LLC increased its position in Broadwind Energy by 62.0% during the 4th quarter. LPL Financial LLC now owns 31,637 shares of the industrial products company’s stock worth $90,000 after purchasing an additional 12,102 shares in the last quarter. Finally, Mariner LLC increased its position in Broadwind Energy by 17.1% during the 4th quarter. Mariner LLC now owns 36,120 shares of the industrial products company’s stock worth $102,000 after purchasing an additional 5,268 shares in the last quarter. Institutional investors and hedge funds own 33.27% of the company’s stock.

About Broadwind Energy

(Get Free Report)

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.

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Earnings History for Broadwind Energy (NASDAQ:BWEN)

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