Green Energy Stocks: Advanced Energy Industries
Generating revenue from two business segments: Thin Films and Solar Energy. If Advanced Energy Industries (AEIS) could ever figure out how to generate consistent profits from its two businesses, AEIS stock would be well past $50. As it is, it’s still currently trading higher than it has since 2002.
The cause of its 45% move during the past 52 weeks has everything to do with its financial results. Its Q4 earnings were released in early February, and they were solid. The Thin Films segment saw revenues increase 64.4% year-over-year to $87.6 million and 16.2% on a sequential basis.
Its solar power segment, on the other hand, saw sequential growth decline by 4% to $64.9 million in Q4 2013. On a year-over-year basis, however, it was able to increase revenue by 8.9%, so all is not lost.
The glass-is-half-full opportunity comes farther down the income statement. Although AEIS’ solar energy power inverter business was able to generate $250 million in annual revenue in 2013, its operating profit was in fact a $3.8 million loss. Not to worry. The solar business is still in its infancy. Volatility is to be expected. As long as Advanced Energy Industries continues growing its solar business on the top line, long-term profitability will take care of itself.
On the thin film side of its business, you’re talking about the semiconductor industry == revenue cycles are the norm. Profits, although volatile, are generally available.
The company’s two businesses compliment each other very well. AEIS stock is a good three- to five-year hold with momentum currently on its side.
So, what if you only want to make a speculative buy? Which of the three should you target? Well…