The 10-second takeaway
For the quarter ended March 31 (Q1), ADA-ES beat expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share contracted.
Gross margin and operating margin dropped, while net margin increased.
ADA-ES reported revenue of $18.2 million. The three analysts polled by S&P Capital IQ wanted to see a top line of $17.4 million on the same basis. GAAP-reported sales were much higher than the prior-year quarter's $8.5 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 -$0.11. The two earnings estimates compiled by S&P Capital IQ forecast -$0.06 per share. GAAP EPS were -$0.14 for Q1 against -$3.63 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 21.9%, 6,280 basis points worse than the prior-year quarter. Operating margin was -6.8%, 2,860 basis points worse than the prior-year quarter. Net margin was -7.7%, 31,760 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $33.6 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $162.1 million. The average EPS estimate is $1.97.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 22 members rating the stock outperform, and 13 members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give ADA-ES a green thumbs-up, and six 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 $36.
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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.