Wind blade manufacturer TPI Composites ( NASDAQ: TPIC ) +13.7% after Q4 adjusted EBITDA beat analyst expectations while and net sales from continuing operations jumped 15% Y/Y to $402.3M.
Q4 net loss decreased to $57.8M, or $1.38/share, from a loss of $93.3M, or $2.39/share, in the year-earlier quarter, and Q4 adjusted EBITDA totaled $40.8M compared to a loss of $28.3M during the same period in 2021.
For FY 2023, TPI ( TPIC ) guided for net sales from continuing operations in the $1.6B-$1.7B range with low single-digit adjusted EBITDA margin from continuing operations.
TPI ( TPIC ) expects blade volume will decline slightly in 2023 after halting operations in China, but it forecasts Y/Y sales growth in the high single- to low double-digits from the rest of its global footprint.
"Even though we are still waiting for formal implementation guidance to the Inflation Reduction Act, we are already seeing signs of demand coming back in the U.S. fueled by the expected benefits of this legislation," President and CEO Bill Siwek said. Blade volume will be down slightly in 2023 as we have ceased operations in China, however, we expect to deliver year-over-year sales growth in the high single to low double-digits in 2023 from the rest of our global footprint.
Following the results, Bank of America double upgraded TPI Composites ( TPIC ) to Buy from Underperform with a $14 price target, raised from $9.
"With shares only modestly off their all-time lows and with cash burn backdrop abating in Q1 2023, we perceive an opportunistic moment to get more constructive" on TPI ( TPIC ), BofA's Julien Dumoulin-Smith said.
TPI Composites ( TPIC ) shares have gained 38% so far this year and 39% during the past 12 months .
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TPI Composites surges on Q4 earnings topper, BofA upgrade