Energy recovery device manufacturer Energy Recovery (NASDAQ: ERII) will be reporting earnings this Wednesday after the bell. Here’s what to expect.
Energy Recovery missed analysts’ revenue expectations by 63.3% last quarter, reporting revenues of $8.07 million, down 33.3% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
Is Energy Recovery a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Energy Recovery’s revenue to decline 6.5% year on year to $25.44 million, a reversal from the 31.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Energy Recovery has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Energy Recovery’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Xylem delivered year-on-year revenue growth of 6.1%, beating analysts’ expectations by 4.2%, and Mueller Water Products reported revenues up 6.6%, topping estimates by 3.4%. Xylem traded up 8.7% following the results.
Read our full analysis of Xylem’s results here and Mueller Water Products’s results here.
Investors in the industrial machinery segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Energy Recovery is up 4.7% during the same time and is heading into earnings with an average analyst price target of $14.50 (compared to the current share price of $13.48).
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