AMSC to Report Q1 Earnings: What's in Store for the Stock?

American Superconductor expects earnings per share to be more than 17 cents. The Zacks Consensus Estimate for first-quarter earnings is pinned at 20 cents per share, implying a year-over-year decline of 31%. The consensus mark for earnings has been revised downward over the past 60 days.

AMSC’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 491.6%.

Factors Likely to Influence AMSC’s Q1 Results

American Superconductor appears well-positioned for another healthy quarter. Strong demand across power infrastructure, utilities and AI-driven data centers is likely to have driven top-line growth during the first quarter.

The Grid segment is anticipated to have remained AMSC's primary growth engine in the to-be-reported growth. In the last reported financial results for the fourth quarter of fiscal 2025, American Superconductor’s Grid revenues jumped approximately 33% year over year to $73.7 million. The segment is benefiting from strong demand across utilities, LNG facilities, mining, semiconductor manufacturing and renewable energy projects. The growing need for power-quality solutions amid expanding electricity demand is likely to have supported another solid quarter for the segment.

Emerging business opportunities from the data center market could have contributed positively during the first quarter. American Superconductor is now supplying power-quality equipment directly to data centers while also benefiting from utility investments needed to support AI infrastructure. In the fourth quarter of fiscal 2025, nearly 10% of orders came from the data center market, double the prior quarter’s contribution.

Continued integration progress of the Comtrafo business is also likely to have supported first-quarter top-line growth. The Comtrafo acquisition expanded American Superconductor's transformer portfolio and strengthened its presence in Brazil and Latin America. Alongside contributing additional revenues, the acquisition broadens the company's addressable market and creates cross-selling opportunities across utility and industrial customers.

Nonetheless, American Superconductor’s bottom-line performance is likely to have been negatively impacted by acquisition costs and rising operating expenses. Although Comtrafo is adding revenues, purchase accounting and amortization charges remain a near-term drag on profitability. Management expects approximately $1.5 million of such charges during the first quarter before they begin declining from the second quarter onward.

AMSC has significantly expanded its workforce while integrating Comtrafo. Although management expects operating leverage over time, research, development and SG&A expenses remain elevated as the company supports future growth initiatives and completes integration activities. In the fourth quarter of fiscal 2025, the company’s operating expenses soared 50% year over year, significantly higher than the 30% increase registered in revenues.

Q1 Earnings Whispers for American Superconductor

Our proven model does not conclusively predict an earnings beat for AMSC this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

American Superconductor currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering in the broader Zacks Computer and Technology sector, as our model indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases:

SanDisk Corporation SNDK is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, it has an Earnings ESP of +4.13% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for SanDisk’s fourth-quarter earnings is pegged at $34.24 per share, indicating a year-over-year surge of 11,707%. Earnings estimates for the quarter have been revised upward by 5.7% over the past 60 days. Shares of SanDisk have jumped 505.1% year to date (YTD).

Western Digital Corporation WDC is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, it has an Earnings ESP of +3.22% and sports a Zacks Rank #1.

The Zacks Consensus Estimate for Western Digital’s fourth-quarter earnings is pegged at $3.35 per share, suggesting a year-over-year increase of 101.8%. Earnings estimates for the quarter have been revised upward by 3 cents in the past 30 days. Shares of Western Digital have risen 201.7% YTD.

MKS Inc. MKSI is scheduled to report second-quarter 2026 results on Aug. 5. Currently, it has an Earnings ESP of +2.64% and sports a Zacks Rank #1.

The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $2.93 per share, calling for a year-over-year jump of 65.5%. Earnings estimates for the quarter have been revised northward by a penny in the past 30 days. Shares of MKS have rallied 106% YTD.

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This article originally published on Zacks Investment Research (zacks.com).

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