The 10-second takeaway
For the quarter ended June 30 (Q2), Energy Recovery beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins dropped, net margins shrank.
Energy Recovery chalked up revenue of $8.6 million. The five analysts polled by S&P Capital IQ expected sales of $8.0 million on the same basis. GAAP reported sales were 30% lower than the prior-year quarter's $12.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at -$0.03. The six earnings estimates compiled by S&P Capital IQ predicted -$0.06 per share. GAAP EPS were -$0.03 for Q2 against $0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 61.6%, 740 basis points better than the prior-year quarter. Operating margin was -14.9%, much worse than the prior-year quarter. Net margin was -17.0%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $10.5 million. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $44.2 million. The average EPS estimate is -$0.14.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Energy Recovery is hold, with an average price target of $3.82.
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