ARQ Earnings Prediction
The chart below shows how ARQ performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ARQ sees a +2.22% change in stock price 10 days leading up to the earnings, and a +31.25% change 10 days following the report. On the earnings day itself, the stock moves by +0.05%. This data can give you a slight idea of what to expect for the next quarter's release.
ARQ Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
34.77M
16.58%
36.88%
Gross Margin
30.82%
43.42%
20.11%
Operating Margin
5.39%
163.71%
-196.42%
Net Margin
4.65%
163.79%
-160.00%
EPS
0.04
157.14%
-166.67%
No Data Available
ARQ Earnings Analysis
Arq, Inc. Common Stock Corporation (ARQ.O) Earnings Conference Call
Positive
Record PAC Revenue Growth: 1. Record PAC Operating Revenue: Arq achieved record PAC operating revenue of approximately $35 million in Q3 2024, reflecting a nearly 17% increase over the same period last year.
Gross Margin Improvement: 2. Improved Gross Margins: The company reported gross margins of approximately 39%, an improvement of about 800 basis points year-over-year, showcasing enhanced profitability.
Adjusted EBITDA Surge: 3. Significant Adjusted EBITDA Growth: Adjusted EBITDA for the quarter was approximately $5 million, a substantial increase from $800,000 in the prior year period, indicating strong operational performance.
Equity Raise Success: 4. Successful Equity Raise: Arq raised approximately $44 million through strategic equity offerings, significantly enhancing its financial flexibility and market capitalization, which increased nearly five-fold to approximately $250 million.
GAC Contracting Milestone: 5. Strong GAC Contracting Progress: The company is contracted for approximately 15 million pounds of annual GAC product, representing 60% of its 25 million pound capacity, with expectations to fully contract by Q1 2025.
Negative
R&D Cost Increase: 1. Increased R&D Costs: Research and development costs rose by 23% year-over-year, indicating higher spending without immediate returns on investment.
High SG&A Expenses: 2. High Selling, General and Administrative Expenses: Selling, general and administrative expenses totaled $8.1 million, reflecting a significant cost burden despite a slight reduction from the previous year.
Red River Expenditure Impact: 3. Negative Cash Flow from Red River Expenditures: Approximately $16.5 million was consumed by expenditures at the Red River facility, impacting overall cash reserves despite a strong cash position.
Term Loan Challenges: 4. Unfavorable Term Loan Negotiations: The company faced increasingly unfavorable terms in refinancing discussions, which could hinder future growth initiatives if not addressed effectively.
Loss-Making Contracts Impact: 5. Remaining Loss-Making Contracts: Although the company has reduced loss-making contracts to roughly 2% of volume, the existence of any loss-making contracts indicates ongoing financial inefficiencies.
ARQ FAQs
How does ARQ typically perform around its earnings report dates?
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ARQ Earning Call Sentiment
Arq, Inc. (ARQ) Q3 2024 Earnings Call Transcript
ARQ.O
-3%Positive
The earnings call summary indicates strong financial performance with revenue up 17% YoY, improved gross margin, and a significant turnaround in net income. Despite some operational and financing risks, the strategic equity raise and CEO's share purchase align management with shareholders. The Q&A session provided clarity on production goals and market demand, particularly in the RNG sector, which is strong. The positive outlook on PFAS regulation and GAC contract growth further supports a positive sentiment. Overall, the company's financial health and strategic direction suggest a positive stock price movement.
