TPI Composites, Inc. (TPIC) Tops Q3 EPS by 92c, Revenues Beat; Offers FY20 Revenue Guidance Above Consensus
TPI Composites, Inc. (NASDAQ: TPIC) reported Q3 EPS of $1.13, $0.92 better than the analyst estimate of $0.21. Revenue for the quarter came in at $474.1 million versus the consensus estimate of $408.14 million.
Highlights
For the quarter ended September 30, 2020:
“We achieved strong revenue and Adjusted EBITDA growth in the third quarter attributable to increased production and high utilization,” said Bill Siwek, President and CEO of TPI Composites. “We also have benefited from a strong demand environment from our customer base and improved operational execution.”
“Strong current demand prospects in the U.S. and other emerging markets, driven by the economics of wind as well as the acceleration of energy transition and decarbonization initiatives, give us confidence in our global wind strategy as we continue to serve our customers in an efficient and cost-effective manner across our global manufacturing footprint.”
“We are also seeing strong performance out of our field services business. While still a relatively small piece of the overall business, we continue to build out the pipeline as we see a path to more significant revenue and margin contribution over time.”
“We are still closely monitoring the COVID-19 pandemic and preparing for potential resurgences in all of our geographies as we have seen a recent upturn in the number of positive cases in several of the regions where we operate. However, as of today, we continue to operate all of our plants near or above capacity as we continue to make up for lost production during the first half of the year, and therefore we are pleased to provide 2020 guidance.”
GUIDANCE:
TPI Composites, Inc. sees FY2020 revenue of $1.64-1.66 billion, versus the consensus of $1.58 billion.
2020 Guidance
On April 23, 2020, TPI announced the withdrawal of its fiscal year 2020 financial guidance first issued on February 27, 2020. We are now providing our full-year and fourth quarter 2020 financial guidance. These numbers could be impacted by COVID-19 due to (i) the rapidly evolving nature, magnitude and duration of the COVID-19 pandemic, (ii) the variety of measures implemented by governments around the world to address its effects and (iii) the impact on our manufacturing operations. Although our plants are currently operating near or above planned capacity, many of our manufacturing facilities are operating in regions with continued high levels of reported COVID-19 positive cases. As such, we may be required to reinstate temporary production suspensions or volume reductions at these manufacturing facilities or at our other manufacturing facilities to the extent there is a resurgence of COVID-19 cases in the regions where we operate or there is an outbreak of positive COVID-19 cases in any of our manufacturing facilities.
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