Broadwind Energy (BWEN) Tops Q3 EPS by 8c

Broadwind Energy (NASDAQ: BWEN) reported Q3 EPS of ($0.16), $0.08 better than the analyst estimate of ($0.24). Revenue for the quarter came in at $50 million versus the consensus estimate of $52.5 million.

Peter Duprey, President and Chief Executive Officer, stated, “As previously announced, Broadwind experienced another tough quarter due in part to production issues in our Towers business and continued weakness in sales to oil and gas and mining customers. We have worked through the steel supplier quality issues, and tower production in Manitowoc is now approaching normal levels. Our Gearing segment booked $7 million of wind replacement gearing orders during the quarter, as we look to utilize our deep gearing knowledge to capitalize on the need for replacement gearing for the aging wind assets in the U.S. We continue to manage expenses judiciously, and our inventory balances dropped as expected during the quarter which freed up $5 million of cash. Our estimates for the fourth quarter are tempered as we work through a tower model changeover in the Abilene plant and anticipate continued weakness in the Gearing segment. As a result, we are estimating Q4 revenue of $44-45 million and an operating loss of $4-5 million.”

Mr. Duprey concluded, “Our Board of Directors authorized a plan to divest the Services segment and we are currently in active discussions with potential buyers. A resolution is expected prior to year-end.”

For earnings history and earnings-related data on Broadwind Energy (BWEN) click here.

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