Broadwind Energy Q2 Results Beat Estimates; Shares Fall 7.4%

Shares of Broadwind, Inc. (BWEN) declined 7.4% in Friday’s trading session even though it reported better-than-expected results for the second quarter ended June 30, 2021. The company pared its losses by about 6.8% and closed at $3.77 in the extended trading session. Broadwind is a precision manufacturer of structures, equipment and components for clean technology.

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Quarterly revenues stood at $46.5 million, down 15% from the same period last year, surpassing the Street’s estimate of $46.31 million. The decline was primarily due to an 18% fall in revenues in the Heavy Fabrications segment.

Broadwind’s earnings per share (EPS) stood at $0.53, which denotes a significant leap from the previous year’s figure of $0.03. Further, the figure topped the consensus estimate of $0.12.

Notably, the company’s results were impacted by a fall in total orders, which witnessed a decline of 33% year-over-year to $26.4 million. Total backlog declined 34% from last year to $74.3 million.

The CEO of Broadwind, Eric Blashford, said, “Although our second-quarter results were adversely impacted by temporary project delays in the current year, we believe both onshore new build and repowering projects should benefit significantly from the Biden Administration’s proposed PTC extension, supporting our expectations for sustained growth in domestic wind capacity during the next decade.” (See Broadwind stock chart on TipRanks)

Three months ago, Roth Capital analyst Justin Clare reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $10 to $8, which implies 126.6% upside potential from current levels.

Consensus among analysts is a Moderate Buy based on 1 Buy and 1 Hold. The average Broadwind price target of $8 implies upside potential of 126.6% from current levels. Shares have declined 18.7% over the past year.