The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Capstone Turbine missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share stayed the same.
Gross margins grew, operating margins dropped, net margins expanded.
Capstone Turbine reported revenue of $27.5 million. The five analysts polled by S&P Capital IQ predicted a top line of $29.4 million. GAAP sales were 14% higher than the prior-year quarter's $24.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.03. The five earnings estimates compiled by S&P Capital IQ predicted -$0.02 per share. GAAP EPS of -$0.03 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 8.5%, 470 basis points better than the prior-year quarter. Operating margin was -28.4%, 170 basis points worse than the prior-year quarter. Net margin was -32.1%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $29.8 million. On the bottom line, the average EPS estimate is -$0.02.
Next year's average estimate for revenue is $111.0 million. The average EPS estimate is -$0.09.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 573 members out of 611 rating the stock outperform, and 38 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Capstone Turbine a green thumbs-up, and 18 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 $2.39.
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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. 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.