Capstone Turbine Corporation (NASDAQ:CPST) reported fourth-quarter and fiscal-2014 results after the market closed, and they did little to impress the market. Fourth-quarter revenue was up just 3% from a year ago, to $36.4 million, and lost $3.4 million, or $0.01 per share, 50% more than a year ago.

With 310 million shares outstanding, it wasn't hard to hit Wall Street's estimate on the mark, but revenue fell below the $38.9 million estimate. 

What's concerning is that there appears to be no end to losses and, as a result, management must continually raise new money and dilute shareholders. For the full year, Capstone lost $16.0 million, down from $22.6 million a year ago, but it had to sell 18.8 million shares last month just to keep operations going for the rest of the year.

Capstone has been a stock with a lot of potential for years now, but never seems to live up to that potential. Until the company swings to a profit, I'll stay away and not get caught in a trap that continues to disappoint investors year after year.

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Travis Hoium has no position in any stocks mentioned. 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.

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