ERII Earnings Prediction
The chart below shows how ERII performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ERII sees a +1.49% change in stock price 10 days leading up to the earnings, and a +5.47% change 10 days following the report. On the earnings day itself, the stock moves by -1.06%. This data can give you a slight idea of what to expect for the next quarter's release.
ERII Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
38.58M
4.18%
41.86%
Gross Margin
65.08%
-6.87%
0.77%
Operating Margin
18.29%
-25.83%
-347.16%
Net Margin
21.98%
-15.72%
-1031.36%
EPS
0.15
-11.76%
-1600.00%
No Data Available
ERII Earnings Analysis
Energy Recovery, Inc. Corporation (ERII.O) Earnings Conference Call
Positive
Quarterly Revenue Record: Total revenue of $38.6 million achieved, setting another quarterly revenue record.
Water Revenue Increase: Water revenue increased by 4% compared to Q3 2023 and up 42% compared to Q2 2024, reflecting strong demand.
Desalination Plant Shipment Completion: Completed the second and final shipment of the Peru project in Chennai, India worth $4.1 million, which will be the largest desalination plant in India.
Gross Margin Improvement: Gross margin improved by 50 basis points compared to the second quarter, with the third quarter coming in at 65.1%, above the previously guided range of 62% to 64%.
Quarterly Net Income Increase: Net income for the quarter was $8.5 million, reflecting a substantial increase compared to the second quarter.
Negative
Revenue Performance Analysis: Total revenue of $38.6 million, while achieving the upper end of guidance, indicates a challenging environment as it reflects only a modest increase compared to previous quarters.
Cost Management Analysis: Operating expenses for the third quarter were $18.1 million, which is below the previously guided range of $21 million to $22 million, suggesting cost management issues.
Quarterly Net Income Analysis: Net income for the quarter was reported at $7.1 million, which, while an increase, still reflects ongoing pressures on profitability compared to prior periods.
Operating Expense Guidance: The company anticipates full-year operating expense guidance to be between $76 million and $78 million, indicating potential cost overruns and financial strain.
Cautious Revenue Outlook: Despite a solid quarter, the company remains cautious about future revenue growth, with expectations for Q4 revenue to be between $62 million and $72 million, which may not meet market expectations.
ERII FAQs
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ERII Earning Call Sentiment
Energy Recovery, Inc. (ERII) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ERII.O
-1.51%Positive
The earnings call summary indicates strong financial performance with a 4% revenue increase and improved gross margins. Guidance remains stable, with a slight reduction in operating expenses. While risks like competitive pressures and supply chain challenges exist, the Q&A reveals no immediate competitive threats for PX G. The lack of a share repurchase plan is offset by a strong cash position and future capital allocation plans. Overall, the company's performance and strategic outlook suggest a positive sentiment, likely leading to a stock price increase of 2% to 8%.