Capstone Energy+ (NASDAQ:CEPL) Announces Earnings Results

Capstone Energy+ (NASDAQ:CEPL) posted its earnings results on Wednesday. The company reported ($0.03) EPS 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 34.62% and a net margin of 3.45%.

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+ Price Performance

Shares of CEPL traded down $0.24 during midday trading on Friday, hitting $6.51. The stock had a trading volume of 246,660 shares, compared to its average volume of 301,474. The stock has a market cap of $212.03 million, a price-to-earnings ratio of -2.09 and a beta of 1.61. Capstone Energy+ has a fifty-two week low of $1.68 and a fifty-two week high of $14.20.

Analysts Set New Price Targets

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

Capstone Energy+ Company Profile

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.