ADA-ES Earnings: Here’s Why the Stock is Up Now

ADA-ES, Inc. (NASDAQ:ADES) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.85%.

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ADA-ES, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.22 in the quarter versus EPS of $-0.14 in the year-earlier quarter.

Revenue: Rose 274.92% to $68.31 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ADA-ES, Inc. reported adjusted EPS loss of $0.22 per share. By that measure, the company missed the mean analyst estimate of $-0.2. It missed the average revenue estimate of $71.79 million.

Quoting Management: Dr. Michael D. Durham, President and CEO of ADA stated, “In the first quarter we saw continued success in both our major business areas, Refined Coal and Emission Control. We will maintain focus on executing on opportunities that we expect will create significant revenue growth and cash flows for the Company over the next months and coming years. We are positioning ourselves for continued long-term success and are developing technologies for expected future markets.
In the first quarter, we achieved a number of important milestones that will serve as the foundation for our growth in 2013 and beyond. Clean Coal, ADA’s joint venture with NexGen Resources Corporation and an affiliate of The Goldman Sachs Group, closed on the sale of an RC facility at a plant that annually burns about 4 million tons of coal per year. This transaction also brought $20 million in upfront payments to Clean Coal, with another $5 million to be paid upon receipt of a Private Letter Ruling from the IRS. We also completed contracts to restructure our agreements on our RC facilities with an affiliate of Goldman Sachs and also successfully tested our M-45-PC TM technology at four power plants. In the Emission Control segment we have won additional significant projects. We look forward to continued success throughout 2013 and beyond.”

Key Stats (on next page)…

Revenue increased 1.29% from $67.44 million in the previous quarter. EPS decreased to $-0.22 in the quarter versus EPS of $-0.54 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.56 to a profit $0.09. For the current year, the average estimate has moved down from a profit of $4.1 to a profit of $1.67 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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