Shares of TPI Composites, the leading producer of wind-blades for renewable energy generation, took a hit in after-market trading on Wednesday following the release of their preliminary financial results for the second quarter and updated full-year guidance.
After-Hours Stock Decline
TPI’s stock fell 15% to $9.10 per share at 6:31 p.m. ET. However, it’s worth noting that the stock had performed well during the regular session, closing up 6.71% at $10.66.
Second-Quarter Projections
In their announcement, TPI revealed that they are anticipating second-quarter net sales of approximately $380 million. However, they are also expecting a net loss attributable to common stockholders ranging from $78 million to $83 million.
Revision in Full-Year Guidance
Additionally, TPI Composites adjusted their full-year net sales guidance for 2023. The new range now falls between $1.525 billion and $1.575 billion. This revision comes after previously forecasting a range of $1.6 billion to $1.7 billion.
Factors Impacting Second-Quarter Results
TPI cited various factors that may negatively affect their second-quarter results. These include increased quality control checks and measures mandated by both TPI’s customers and their customers. Furthermore, the company plans to record a charge of $30 million to $35 million in the second quarter due to a change in warranty estimates. Specifically, this charge primarily relates to a single warranty campaign with a current customer.
In conclusion, TPI Composites faces some challenges ahead as they navigate the impact of these factors on their financial performance.