It's Showtime for Capstone Turbine

Capstone Turbine (Nasdaq: CPST  ) is expected to report Q3 earnings around Feb. 11. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Capstone Turbine's revenues will grow 22.5% and EPS will remain in the red.

The average estimate for revenue is $33.7 million. On the bottom line, the average EPS estimate is -$0.02.

Revenue details
Last quarter, Capstone Turbine reported revenue of $30.1 million. GAAP reported sales were 9.6% higher than the prior-year quarter's $27.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at -$0.02. GAAP EPS were -$0.02 for Q2 compared to $0.00 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 8.7%, 260 basis points better than the prior-year quarter. Operating margin was -20.7%, 540 basis points better than the prior-year quarter. Net margin was -20.5%, 2,510 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $130.1 million. The average EPS estimate is -$0.08.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 578 members out of 617 rating the stock outperform, and 39 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Capstone Turbine a green thumbs-up, and 22 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Capstone Turbine is outperform, with an average price target of $2.18.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (3) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 06, 2013, at 3:07 PM, Trumpace wrote:

    For Capstone, they grow revenue but fail to make a profit, quarter after quarter. What they really need IMHO is someone who can run this company right and begin to return value to the shareholder, this CEO so far has been unable to achieve this. IMHO it is time for a change if a loss is reported for the quarter. He has had enough time to get the job done..., especially in this political environment where this type of product should flourish.

  • Report this Comment On February 06, 2013, at 5:54 PM, Mechy24 wrote:

    I must be missing something. They are being delisted from NASDAQ, have $40M in cash left and lose $20-25M a year with warranty liabilities growing. If they don't show a profit on the 11th there has to be a sell off as institutional investors bail because of the delisting (which still good happen even with positive news). They don't have enough to buy back stock, the bank could call in the credit depending on the terms and it will tough to raise more capital on the OTCM. They bearly have enough to go through bankruptcy now. If I were GE I'd be looking to snap them up when price goes below $0.50, but as an investor how does this company get a buy rating.

  • Report this Comment On February 12, 2013, at 10:31 AM, kthor wrote:

    good products bad management

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