NWL merger
Post# of 44
(Total Views: 100)
Posted On: 08/05/2024 2:44:51 PM
The earnings call and guidance this week just became a lot more interesting with the merger with NWL, Inc.
This looks like a low-risk merger for amsc.
Raises revenue immediately and leaves amsc $60+ Million in cash after merger.
Margins will suffer a bit.
Lately, amsc margins are around 25% for $40+ Million per quarter.
NWL brings (averaged) $13 Million per quarter at less than 13 % margin.
amsc has been saying that $50 Million per qtr. is the target for "profitability."
With the lower margins, that target may need to be raised a bit but that makes the guidance wed and the call Thursday all the more interesting.
Could it be that the 3'rd quarter (feb report) e profitable?
NWL brings more Navy business and some new applications for amsc like a precipitator.
https://byjus.com/physics/electrostatic-precipitator/
This looks like a low-risk merger for amsc.
Raises revenue immediately and leaves amsc $60+ Million in cash after merger.
Margins will suffer a bit.
Lately, amsc margins are around 25% for $40+ Million per quarter.
NWL brings (averaged) $13 Million per quarter at less than 13 % margin.
amsc has been saying that $50 Million per qtr. is the target for "profitability."
With the lower margins, that target may need to be raised a bit but that makes the guidance wed and the call Thursday all the more interesting.
Could it be that the 3'rd quarter (feb report) e profitable?
NWL brings more Navy business and some new applications for amsc like a precipitator.
https://byjus.com/physics/electrostatic-precipitator/
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