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Broadwind Reports Weak Preliminary Q4 Results, Shares Fall

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Broadwind Energy, Inc. (BWEN - Free Report) yesterday announced weaker-than-expected preliminary results for the fourth quarter and full-year 2017. The company’s share price went down 9.6% at the close of trading session on Jan 31.

The company is slated to release its fourth-quarter results on Feb 27, 2018 before the market opens.

In the last three months, the company’s shares have declined 8.6%, underperforming 9.1% gain of the industry it belongs to.



Inside the Headlines

In the fourth quarter, Broadwind Energy’s net sales totaled $18 million, falling short of $20 million predicted for the quarter primarily due to a fall in gearing shipments and CNG sales.

Revenues from the Gearing segment were $8.5 million, below the expected range of $9-$9.5 million. Despite a surge of 150% in gearing orders, the shipments suffered due to delay from supply chain partners.

Earnings before interest, taxes, depreciation, amortization, share-based payments and restructuring costs (EBITDA) are likely to fall in the ($3.5)-($3.7) million range, weaker than ($2)-($3) million predicted.
 
Broadwind Energy anticipates strong backlog and new orders to support the Gearing segment’s volume in the third quarter of 2018. Also, the company anticipates gaining from strengthening tower business. Consolidated revenues are anticipated to be within the $28-$30 million range in the first quarter of 2018, rising to approximately $40 million in the next quarter. Also, the company anticipates reporting positive EBITDA in the second quarter.

The stock’s Zacks Consensus Estimate is pegged at loss of 30 cents for fourth-quarter 2017 and at loss of 7 cents for 2017. Revenues are estimated to be $20.1 million for the fourth quarter and $149.1 million for 2017.

Broadwind Energy, Inc. Price and Consensus
 

Broadwind Energy, Inc. Price and Consensus | Broadwind Energy, Inc. Quote

Zacks Rank & Key Picks

Broadwind Energy carries a Zacks Rank #3 (Hold). Some stocks worth considering in the industry are Colfax Corporation , Illinois Tool Works Inc. (ITW - Free Report) and EnPro Industries, Inc. (NPO - Free Report) . While Colfax sports a Zacks Rank #1 (Strong Buy), both Illinois Tool Works and EnPro Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Colfax’s earnings estimates for 2018 improved in the last 60 days. The company pulled off an average positive earnings surprise of 5.31% in the last four quarters.

Illinois Tool Works’ financial performance was impressive, with an average positive earnings surprise of 4.16% in the last four quarters. Also, earnings estimates for 2018 and 2019 were revised upward over the last 60 days.

EnPro Industries’ earnings estimates for 2018 were revised upward in the last 60 days.

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