UPDATE 3-AMSC Q3 tops Street; shares fall as outlook disappoints

* Q3 adj EPS $0.20 vs est $0.14

* Q3 rev jumps 95 pct

* Ups FY 2009 view, keeps FY 2010 outlook

* Shares fall 9 pct (Adds analyst and company comments, updates share movement)

By Bhaswati Mukhopadhyay

BANGALORE, Feb 2 (Reuters) - American Superconductor Corp (AMSC.O), which makes electrical systems for wind farms and turbines, posted better-than-expected quarterly profit, helped by strong wind-related revenue, and raised its full-year outlook.

However, AMSC shares, which have gained about 145 percent in the last year, fell as much as 9 percent to $36.04 Tuesday as the company's implied outlook for the fourth quarter fell short of expectations. Investors are probably a little disappointed with the sequential earnings-per-share decline that the company implied with its updated full-year outlook, even though it raised the full-year range, analyst Ben Schuman of Pacific Crest Securities said.

"The company is only implying about 13 cents to 15 cents a share in the fourth quarter, which is disappointing after the second-quarter and third-quarter performances," he added.

The energy technology company, whose prime customer is China's Sinovel Wind, sees 2009 adjusted profit of 65 cents to 67 cents a share, compared with its earlier view of 59 cents to 64 cents a share.

Sinovel accounts for about 75 percent of AMSC's total revenue. The company -- which also offers smart grid infrastructure technologies -- has a total of 13 customers in the wind industry, of which five are in China.

"While the guidance does imply continued growth, it is not quite as robust as we have seen over the past year or so," analyst John Hardy of Broadpoint Amtech said.

AMSC now sees 2009 revenue of $312 million to $315 million, up from its previous forecast of $300 million to $310 million.

Analysts on average were expecting earnings of 58 cents a share, on revenue of $306.9 for 2009, according to Thomson Reuters I/B/E/S.

The whisper number may have been higher than the outlook, Ben Schuman of Pacific Crest Securities said. "The company is choosing to reinvest in some strategic growth areas -- such as solar energy and next-generation superconductor wind turbines -- with which investors have to be comfortable with heading into next year," Schuman added.

AMSC's Director of Corporate Communications Jason Fredette said the company will continue to focus very heavily on wind power, and solar energy will only be additive to that business.

VALUATION CONCERNS

For fiscal 2010, the company still sees profit of $1.15 a share and expects revenue to exceed $400 million.

"With several wind turbine manufacturing customers in volume production, many others set to begin production over the next 12 months and new power grid orders continuing to be closed, the foundation has been set for further growth in fiscal 2010 and beyond," Chief Executive Greg Yurek said in a statement.

Analysts said there are concerns about valuation of the company, which is also part of the Tres Amigas renewable energy market hub.

"The guidance for 2010 is $1.15 and the stock is trading more than 30 times earnings. So if you want to buy the stock you want to believe the earnings number is going to grow much higher," analyst Vishal Shah of Barclays Capital said. The fact that AMSC did not raise its 2010 outlook is also contributing to some of the weakness in the stock, analysts said, adding that concerns about customer and geographic concentration remain.

For the third quarter ended Dec. 31, the company posted a net income of $5.2 million, or 11 cents a share, compared with a net loss of $7.8 million, or 18 cents a share, a year ago.

On an adjusted basis, it earned 20 cents a share, topping analysts' average expectation of 14 cents a share.

Revenue rose 95 percent to $80.7 million. Analysts were expecting $76.7 million.

Shares of the company were trading down $3.62 at $36.13 Tuesday afternoon on Nasdaq. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Aradhana Aravindan)