The 10-second takeaway
For the quarter ended June 30 (Q2), ADA-ES crushed expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share contracted.
Gross margins dropped, operating margins improved, net margins improved.
ADA-ES logged revenue of $52.5 million. The three analysts polled by S&P Capital IQ looked for revenue of $30.6 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $7.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.26. The three earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. GAAP EPS were -$0.26 for Q2 versus -$0.30 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.2%, 5,950 basis points worse than the prior-year quarter. Operating margin was 3.0%, 3,510 basis points better than the prior-year quarter. Net margin was -5.0%, 2,700 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $34.0 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $128.0 million. The average EPS estimate is $0.48.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 22 members out of 34 rating the stock outperform, and 12 members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give ADA-ES a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ADA-ES is outperform, with an average price target of $38.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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.