Movers and SHAKERS
Capstone Green Energy Corporation (CGRN)
June-quarter sales disappointing but growth is coming
Capstone Green Energy Corp is the producer of low-emission microturbine systems.The company develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications. Capstone Turbine's products include onboard generation for hybrid electric vehicles; conversion of oil field and biomass waste gases into electricity; combined heat, power, and chilling solutions; capacity addition; and standby power.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
June quarter sales were below our expectations. The company reported revenues of $16.1 million up 13% year over year but down 4.5% sequentially and below our $18.5 million forecast. The company is in the middle of a transition towards rental and service business, which will provide for more steady revenues but will have less of the big ticket items that sometimes boost sales in a given quarter. Management believes rentals and sales are still being negatively impacted by COVID and supply chain issues specifically pointing to Italy, India and Brazil where Capstone does business.
Costs rose causing margins and cash flow to shrink. Adjusted EBIDTA was ($2.3) million versus $0.1 million. Cost of goods sold rose to $13.4 million versus $10.8 million pushing gross margins down to $2.6 million (16%) versus $3.4 million (24%). We had hoped for the gross margin percent to remain at 24%. Operating costs were $6.2 million versus $3.9 million last year. Net income was ($4.8) million ...
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