Shares of sustainable solutions provider TPI Composites (NASDAQ:TPIC) are down in double digits today after the company’s preliminary second-quarter numbers and full-year outlook disappointed investors.
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The company has been facing wind turbine and blade quality issues and is taking steps including engaging with customers on standardized products, a revamp of its senior team, and the recent hiring of Neil Jones as the new Chief Quality Officer to overcome the challenges.
Consequently, amid rising repair costs and longer production processes, TPI now sees net sales at ~380 million for the quarter alongside net loss in the range of $78 million to $83 million. The company is slated to post second-quarter numbers on August 3 and the Street is anticipating a net loss per share of $0.61 on revenue of ~$406 million for the period.
TPI had a cash pile of $170 million at the end of the quarter and expects to reach low single-digit adjusted EBITDA margins in the second half of the year. For full-year 2023, net sales are anticipated between $1.525 billion to $1.575 billion as compared to earlier outlook between $1.6 billion to $1.7 billion. Capital expenditures are anticipated between $40 million and $45 million.
Overall, the Street has a $13.83 consensus price target on TPI alongside a Moderate Buy consensus rating. Short interest in the stock is now inching upwards of 20%.
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