From Tech trader Daily:
Shares of American Superconductor (AMSC) are down $9.73, or 39%, at $15.15, still under heavy pressure from last night’s announcement that fiscal Q4 revenue will come in well below estimates because of a single customer failing to take delivery of the company’s products.
Today, I count at least six downgrades of the stock, and, of course, estimates have been cut everywhere, though some analysts are still citing enough uncertainty to refrain from offering new estimates.
Note that unlike most firms, American describes the fiscal year based on the calendar year in which it starts, not the one in which it ends. So the current fiscal year, which started this month, is referred to by American, and by all analysts, as “fiscal 2011,” rather than “fiscal 2012,” as one might assume:
Ben Schuman, Pacific Crest: Cut his rating from Outperform to Sector Perform. He cut his outlook for fiscal 2011 (ending March of 2012) to $318 million and 35 cents per share in earnings, down from a prior $463 million and $1.15 in EPS, and there may be more “adjustments” once Sinovel issues its annual report. He knew, writes Schuman, that elevated inventory at Sinovel was not sustainable, but ” We had hoped that Sinovel’s inventory—especially of 1.5 MW components—would burn off gradually. We are estimating Sinovel component shipments from AMSC of 2,457 in 2011, down from well over 6,000 in 2010.”
John Hardy, Gleacher & Co.: Reiterates a Hold rating on the shares, writing that the surprise with Sinovel, “is consistent with our view that working capital adjustments at Sinovel associated with slowing growth in China was/is the primary risk for the stock.” Hardy also thinks it’s possible American will not go through with its intended acquisition of Finnish wind-power engineering firm The Switch Engineering Oy, for $265 million, announced last month. “We question whether AMSC takes on added Chinese exposure given this latest development, and as a result no longer model the announced acquisition will close as expected in F2Q11.” Hardy cut his fiscal 2011 estimate to $356.6 million in revenue and 66 cents in EPS from $430 million and $1.35....MORE
