Capstone Energy+ (NASDAQ:CEPL) Posts Earnings Results

Capstone Energy+ (NASDAQ:CEPL) posted its earnings results on Wednesday. The company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.02), Zacks reports. The firm had revenue of $24.92 million during the quarter, compared to the consensus estimate of $23.10 million. Capstone Energy+ had a negative return on equity of 38.40% and a net margin of 2.66%.

Here are the key takeaways from Capstone Energy+’s conference call:

• Profitability and cash generation improved despite lower revenue. First-quarter revenue fell 11% year over year to $24.9 million, but gross profit rose 16% to $8.8 million, gross margin expanded to 35% from 27%, and operating cash flow reached $5.4 million.
• Product cost-reduction initiatives are strengthening unit economics, including a reported 57% reduction in the cost of an air-bearing cartridge while also reducing sole-source supply-chain risk. Management also said factory investments are improving productivity and that production capacity could be increased through additional shifts as orders become committed.
• Capstone reported growing interest in behind-the-meter power for data centers, with discussions advancing toward pilots and larger opportunities, but no customer agreement has yet been signed. Management said the pipeline is growing, though customer capital approvals and power-purchase agreements are taking longer than expected.
• Rental revenue declined sharply because of lower fleet utilization amid oil-price and geopolitical uncertainty, while parts and service margins fell due to higher warranty-related claims and costs.
• The company has $25.3 million of exit notes maturing in December 2026 and is pursuing refinancing or repayment options. Management said it does not plan to extend the Goldman note, leaving execution of the refinancing as an important near-term financial consideration.

Capstone Energy+ Stock Performance

Shares of CEPL traded down $1.78 on Thursday, hitting $6.47. The company’s stock had a trading volume of 600,571 shares, compared to its average volume of 292,351. Capstone Energy+ has a fifty-two week low of $1.68 and a fifty-two week high of $14.20. The firm has a market capitalization of $210.85 million, a PE ratio of -2.05 and a beta of 1.61.

Analyst Ratings Changes

Several research firms have recently weighed in on CEPL. Wall Street Zen raised shares of Capstone Energy+ from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Zacks Research upgraded Capstone Energy+ to a “hold” rating in a report on Tuesday, July 14th. Weiss Ratings cut Capstone Energy+ from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, August 3rd. BWS Financial started coverage on shares of Capstone Energy+ in a report on Monday, July 13th. They set a “buy” rating and a $20.00 price objective on the stock. Finally, Craig Hallum set a $13.00 target price on shares of Capstone Energy+ in a research note on Thursday. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $16.50.

About Capstone Energy+

Capstone Green Energy Corporation provides carbon reduction and on-site resilient green energy solutions. Capstone Green Energy Corporation, formerly known as Capstone Turbine Corporation, is based in VAN NUYS, CA.