Why Capstone Turbine's Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Capstone Turbine (NASDAQ: CPST  ) dropped as much as 11% today after reporting fiscal fourth-quarter earnings.

So what: Revenue rose 18% from a year ago, to $35.4 million, and the company lost $4.1 million, or $0.01 per share, in the quarter. Revenue was slightly lower than estimates, and earnings per share were even with expectations. 

Now what: The only other note is that Ardour Capital downgraded the stock to hold, but I don't see anything alarming in the quarter. Capstone is making progress on its way to profitability, and next year may be the year it turns the corner. No reason to change your investment thesis today, although this Fool is waiting to see a positive bottom line before buying in.

Interested in more info on Capstone Turbine? Add it to your watchlist by clicking here.


Read/Post Comments (1) | Recommend This Article (7)

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 June 17, 2013, at 12:27 PM, mstavy wrote:

    Technical Question: You stated that CPST is making progress on its way to profitability, and next year may be the year it turns the corner. CPST reports on a fiscal year (F/Y) basis. The last F/Y ended 3/31/13. The current F/Y ends 3/31/14. The next F/Y ends 3/31/15. My question is when you mean when you state that…next year may be the year…. What fiscal year are you referring to? Or are you referring to a calendar year?

    BTW: Based on what CPST reported for its last F/Y which ended 3/31/13, I agree with you that there is…no reason to change your (i.e. my) investment thesis today.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2491005, ~/Articles/ArticleHandler.aspx, 12/20/2014 4:00:19 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement