The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ADA-ES crushed expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Gross margins shrank, operating margins improved, net margins grew.
ADA-ES recorded revenue of $24.6 million. The three analysts polled by S&P Capital IQ wanted to see a top line of $7.9 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $9.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.18. The three earnings estimates compiled by S&P Capital IQ anticipated $0.12 per share on the same basis. GAAP EPS were $1.53 for Q4 versus -$0.41 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 18.9%, 5,330 basis points worse than the prior-year quarter. Operating margin was -0.3%, 6,030 basis points better than the prior-year quarter. Net margin was 55.9%, 9,070 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $8.3 million. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $62.6 million. The average EPS estimate is $0.91.
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 seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give ADA-ES a green thumbs-up, and two 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 $23.50.
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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. 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.