Why Capstone Turbine's Shares Dropped

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Capstone Turbine dropped 13% today after the company reported earnings.

So what: Revenue fell 15% to $24.4 million and the company lost $6.8 million, or $0.02 per share. The loss was a penny worse than estimates, and the company doesn't show any real signs of turning to a profit.  

Now what: Investors have been hoping that Capstone would push closer to a profit this year but that hope seems all but gone at this point. Double-digit gross margins won't help unless revenue grows, and with only $27.1 million in new orders there won't be enough growth to generate a profit. I'm staying out of this stock until I see a real profit, something that seems to always be on the horizon but never comes close to reality.

Interested in more info on Capstone Turbine? Add it to your watchlist by clicking here.

The article Why Capstone Turbine's Shares Dropped originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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