NEW YORK ( TheStreet) -- American Superconductor (AMSC - Get Report) shares are rallying on Tuesday on the strength of an earnings report that upped full year and long-term guidance, beat the quarterly Street estimate by 7 cents, and offered limited evidence of the company diversifying away from its reliance on its core Chinese wind market.
American Superconductor shares were up 9% on Tuesday and triple its average daily trading was reached by the mid-afternoon, with more than 2.4 million shares traded.
Revenue for the company's fiscal third quarter was $114.2 million, in line with the Street expectation.
American Superconductor Non-GAAP net income of 40 cents per share was ahead of the Street consensus of 33 cents.The strong quarterly earnings from American Superconductor are the first results from the company since a Barron's report in December that alleged weakness in the business of American Superconductor revenue backbone Sinovel, the Chinese wind-power company. The report caused a major slide in American Superconductor shares. American Superconductor alluded to its reliance on the wind market in its latest earnings, but also sought to show that it is diversifying revenue streams. The company noted that it generated record power-grid market revenue in the quarter, of $20 million. Greg Yurek, AMSC's founder and chief executive officer, said in the earnings report, "Sales in the wind energy market, particularly in Asia, are expected to continue to be the growth engine for our company in the near term. At the same time, sales of our grid-related products, including D-VAR, D-VAR RT, SolarTie, Amperium wire and superconductor cable projects, are expected to become a much bigger contributor to our growth going forward." American Superconductor was bullish in both the short-term and long-term outlook also. American Superconductor also raised its full year earnings outlook to a range of $1.33 to $1.38, ahead of the Street consensus, at $1.30. The company said its strategic growth plan to achieve $1 billion in revenue and operating margin in excess of 20% by 2015 can now be moved up by at least one year, as a result of capital it raised in a November offering, and growth in the wind and power-grid markets.