TPI Composites surged on top of Q4 earnings, BofA upgrade (NASDAQ:TPIC)
TPI Composites spoiler manufacturer (NASDAQ:TPIC) +13.7% Later 4Q Adjusted EBITDA beat analysts’ expectations while and net operating revenue continued to grow 15% year-over-year to $402.3 million.
The fourth-quarter net loss fell to $57.8 million, or $1.38 per share, from a loss of $93.3 million, or $2.39 per share, in the fourth quarter. . Q4 and adjusted EBITDA totaled $40.8 million compared to a loss of $28.3 million in the same period in 2021.
For fiscal year 2023, TPI (TPIC) is guided on net revenue from continuing operations in the range of $1.6B-$1.7B with a low single-digit adjusted EBITDA margin from continuing operations.
TPI (TPIC) expects blade volumes to decline slightly in 2023 following the suspension of operations in China, but it forecasts Y/Y sales growth in the high one to double digits low compared to with the rest of the global footprint.
“While we are still awaiting formal implementation guidance for the Inflation Reduction Act, we are already seeing signs of demand returning in the United States,” said President and CEO Bill Siwek. motivated by the expected benefits of this legislation”. Blade volume will decline slightly in 2023 as we have shut down our operations in China, however, we expect to deliver high single- to double-digit year-over-year sales growth by 2023 compared to the rest of our global footprint.
As a result, Bank of America has doubled TPI Composites (TPIC) to Buy from Underperforming with a $14 price target, up from $9.
“With equities down only slightly from all-time lows and the cash burn landscape easing into Q1 2023, we see this as the right time to build more” on TPI (TPIC), says Julien Dumoulin-Smith of BofA.
TPI composites (TPIC) shares have up 38% year-to-date and 39% over the past 12 months.