TPI Composites Faces Potential Headwinds
Renewable energy holds a lot of promise, and the companies that specialize in the equipment that goes into renewable energy production have a huge opportunity. TPI Composites (NASDAQ: TPIC) makes the composite blades for wind turbines, and demand for turbines has been high. Yet last quarter's poor performance shocked investors, and many feared that tougher times would persist well into the future.
Coming into Wednesday's second-quarter financial report, TPI Composites investors were prepared to see further losses amid sharply higher revenue. TPI's numbers were better than expected on the bottom line, yet despite that good news, changes in guidance suggest that the wind turbine business could be far from getting itself completely back into shape.
Second-quarter results were generally favorable. Revenue for the blade maker jumped to $330.8 million, up by more than $100 million from the year-ago period. Net income of $1.83 million reversed a year-earlier $4.05 million loss, and earnings of $0.05 per share were quite a bit better than the loss of $0.26 per share that most investors were resigned to seeing from TPI.
Quelle Fool.com
