TPI Composites: Q4 Earnings Fall Short, Full-Year Guidance Below Estimates
Key Highlights:
* Revenue: $346.5 million, below analyst estimates of $364.8 million (16.7% YoY growth)
* Earnings Per Share (EPS): -$1.03, significantly below consensus estimates of -$0.21
* Adjusted EBITDA: $1.25 million, missing estimates by 90.6%
* Full-Year Revenue Guidance: $1.45 billion, 8.6% below analyst forecasts
* Operating Margin: -6.4%, improved from -15.7% in Q4 2023
* Free Cash Flow: $83.22 million, up from -$15.36 million in Q4 2023
Company Overview:
TPI Composites (TPIC) manufactures wind turbine blades and provides related assembly systems.
Renewable Energy Sector:
Renewable energy companies face opportunities with the global shift towards green energy but may be affected by economic cycles and regulations.
Sales Growth:
* TPI Composites has experienced inconsistent demand in recent years, with a 1.4% annual decline in sales over the past five years.
* Recent sales have declined 8.5% annually over the past two years, reflecting industry headwinds.
Operating Margin:
* Unprofitable operations have resulted in a negative average operating margin of 4.8% over the past five years.
* Operating margin decreased by 9.3 percentage points during this period.
Earnings Per Share (EPS):
* EPS has declined 58.1% annually over the past five years.
* EPS fell to -$1.03 in Q4 2024, missing estimates.
* Wall Street forecasts an improvement to -$1.00 for the full year 2025.
Key Takeaways:
* TPI Composites missed key financial metrics in Q4.
* Full-year revenue guidance fell short of estimates.
* The stock remained flat after the earnings release.
* Further analysis is recommended to determine the company's long-term potential.