Energy and renewable energy projects company Ameresco (NYSE:AMRC) will be announcing earnings results this Monday after market close. Here’s what to expect.
Ameresco beat analysts’ revenue expectations last quarter, reporting revenues of $401.5 million, up 13.8% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.
Is Ameresco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Ameresco’s revenue to decline 2.5% year on year, a reversal from the 7.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Ameresco has a history of exceeding Wall Street’s expectations.
Looking at Ameresco’s peers in the construction and engineering segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Quanta delivered year-on-year revenue growth of 41.1%, beating analysts’ expectations by 12%, and EMCOR reported revenues up 19.8%, topping estimates by 9.4%. Quanta traded up 18.9% following the results while EMCOR was also up 18.6%.
Read our full analysis of Quanta’s results here and EMCOR’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the construction and engineering stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Ameresco is down 22.1% during the same time and is heading into earnings with an average analyst price target of $42.50 (compared to the current share price of $21.06).
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