TPI Composites, Inc. (TPIC) Misses Q1 EPS by 41c, Revenues Beat; Offers FY19 EPS Guidance Below Consensus, FY19 Revenue Mid-Point Views Below Consensus

May 8, 2019 4:05 PM

TPI Composites, Inc. (NASDAQ: TPIC) reported Q1 EPS of ($0.35), $0.41 worse than the analyst estimate of $0.06. Revenue for the quarter came in at $299.8 million versus the consensus estimate of $292.64 million.

“As explained in our press release issued last week, our first quarter results were disappointing due to a few extraordinary events which occurred during the quarter,” said Steve Lockard, CEO of TPI Composites. “Despite the challenges we faced, specifically the difficulties with Senvion and the loss of production because of labor issues in Matamoros, our mature operations are performing at or above expectations and our core strategy remains intact and we remain focused on execution.”

“The fundamentals of our business remain strong as we continue to partner with our customers to support their global production needs. We have invested heavily in new line startups and existing line transitions, laying the groundwork for doubling the company’s revenueover a three-year period and beyond. From our perspective, the first quarter was a small setback in our longer-term vision which continues to be supported by an increasingly improving global wind market outlook.”

“Concurrent with our earnings release today, we announced key management changes that will better position TPI going forward. Bill Siwek, our long-time CFO has been promoted to President and Bryan Schumaker has been appointed CFO, effective May 13, 2019. Brian joins us after having spent 11 years at First Solar, Inc., most recently as their Chief Accounting Officer. These changes are in addition to the appointment of Ramesh Gopalakrishnan as our COO – Wind last week. We are excited about these changes and have confidence in each individual’s ability to excel in their role and lead TPI through its next phase of growth.”

“The first quarter did not meet our expectations and, as a result, we have updated our guidance to reflect our current expectations for 2019. We now expect 2019 net sales to be between $1.45 billion and $1.5 billion and 2019 adjusted EBITDA to be between $80 million and $85 million. With the first quarter behind us, we are focused on delivering solid performance for the remainder of 2019. We remain confident in our ability to execute against our plan to double revenue over a three-year period,” concluded Mr. Lockard.

GUIDANCE:

TPI Composites, Inc. sees FY2019 EPS of ($0.09)-($0.03), versus the consensus of $1.37. TPI Composites, Inc. sees FY2019 revenue of $1.4-1.5 billion, versus the consensus of $1.5 billion.

For earnings history and earnings-related data on TPI Composites, Inc. (TPIC) click here.

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