American Superconductor (AMSC) Expected To Grow In 2010

American Superconductor (NASDAQ: AMSC), a manufacturer of superconductor equipment and power electronic converters that service utility companies and industrial power users, reported 3Q10 earnings that reveal promise for the company in 2010.

Last quarter, AMSC earned $0.20 per share, up 47% from the consensus estimate of $0.17 per share. This is the fourth consecutive quarter of growth for the company, which reaped $80.7 million in revenues for the quarter and a GAAP net income of $5.2 million.

AMSC is attractive for several reasons. As of two days ago, the company reported a cash, securities, and equivalents balance of over $135 million, and predicted a positive net cash flow through the next quarter.

They also recently increased their revenue and profit forecasts for 2010, a sign that the company is quite optimistic regarding its prospects.

The market in which AMSC operates is also the company's favor. AMSC services conventional and non-conventional utility companies and power suppliers, including wind companies. The wind industry is set to growth substantially this year, and AMSC is one of the main suppliers for companies in the field.

The consensus recommendation for AMSC is 'Buy', trending steadily towards 'Strong Buy' over the past four quarters.

Buying AMSC now is perhaps your best opportunity to throw your hat in for the long haul, since the stock has so far dropped 8.25% in trading. The current price of 36.47 is still substantially higher than Feb. 09's mark and likely will grow through the next four quarters.