What Happened?
Shares of power resiliency solutions provider American Superconductor (NASDAQ: AMSC) jumped 29.8% in the afternoon session after the company posted strong quarterly financial results and offered an optimistic revenue forecast. The energy solutions provider announced impressive fiscal first-quarter results, with revenues of $72.36 million, which marked a 79.6% increase from the previous year and surpassed analyst expectations. Earnings per share also came in ahead of forecasts at $0.14. Company leadership attributed the strong performance to accelerated growth driven by high demand in the semiconductor market, particularly for artificial intelligence and data center applications. Furthermore, the company provided a strong revenue outlook for the next quarter that also exceeded Wall Street's predictions, marking its fourth consecutive profitable quarter.
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What Is The Market Telling Us
American Superconductor’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. But moves this big are rare even for American Superconductor and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 9 days ago when the stock dropped 4% on the news that the stock pulled back from a recent rally that saw it hit a new 52-week high in the prior session. The decline followed a strong performance on the previous day when the stock reached a new 52-week high of $43.41. The move suggested some investors were taking profits after a significant run-up in the share price. The stock had been on a strong upward trend, gaining considerable value year-to-date. This kind of pullback is not uncommon for stocks that have experienced rapid appreciation as momentum traders and short-term investors lock in gains. No specific negative company news was released to account for the session's decline.
American Superconductor is up 121% since the beginning of the year, and at $56.54 per share, has set a new 52-week high. Investors who bought $1,000 worth of American Superconductor’s shares 5 years ago would now be looking at an investment worth $6,080.
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