Advanced Energy Profit Misses View, Q2 Outlook Weak; Shares Tank

(RTTNews) - Advanced Energy Industries Inc. (AEIS) Monday reported an increase in profit for the first quarter, due mainly to higher revenues, with earnings coming in ahead of Wall Street estimates, while revenues fell short.

Moving ahead, the company detailed a weak outlook for the second quarter, sending its shares down 13 percent in extended trading.

The Fort Collins, Colorado-based company's first-quarter profit rose to $14.7 million or $0.35 per share from $6.8 million or $0.17 per share a year ago.

Adjusted earnings were $18.1 million or $0.43 per share for the quarter. On average, seven analysts polled by Thomson Reuters expected earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter rose to $140.9 million from $111.8 million last year. Analysts had a consensus revenue estimate of $142.60 million for the quarter.

Precision Power products sales increased 34.1 percent to $82.9 million from a year ago, while Inverter sales rose 16.1 percent to $58.1 million.

Gross margin for the period remained unchanged at 37.4 percent from last year.

"We largely delivered the results we anticipated in the first quarter. Our diversified business and powerful manufacturing and distributed R&D model drove increased profitability year over year," said CEO Garry Rogerson.

Looking forward to the second quarter, the company expects earnings of $0.26 to $0.31 per share, adjusted earnings of $0.34 to $0.40 per share and sales of $135 million to $145 million. Analysts currently estimate earnings of $0.47 per share on revenues of 154.48 million for the quarter.

AEIS closed Monday's trading at $21.39, up $0.05 or 0.23%, on the Nasdaq. The stock, however, dropped to $2.74 or 12.81%, in after-hours trade.