FTEK Earnings Prediction
The chart below shows how FTEK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FTEK sees a -1.53% change in stock price 10 days leading up to the earnings, and a -4.81% change 10 days following the report. On the earnings day itself, the stock moves by +1.11%. This data can give you a slight idea of what to expect for the next quarter's release.
FTEK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
7.85M
-1.72%
11.49%
Gross Margin
43.40%
-4.02%
3.53%
Operating Margin
-2.28%
-236.53%
-77.54%
Net Margin
1.02%
-82.26%
-117.06%
EPS
0.00
-100.00%
-100.00%
No Data Available
FTEK Earnings Analysis
Fuel Tech, Inc. Corporation (FTEK.O) Earnings Conference Call
Positive
Profitability Recovery: 1. Return to Profitability: Fuel Tech reported a net income of $80,000 in Q3 2024, marking a return to profitability compared to a net income of $459,000 in the same period last year.
FUEL CHEM Revenue Increase: 2. Revenue Growth in FUEL CHEM: Revenues in the FUEL CHEM segment increased by 8% year-over-year, reaching $4.6 million, driven by returning customers and a new coal-fired account.
Cash and Debt Status: 3. Strong Cash Position: As of September 30, 2024, Fuel Tech had cash, cash equivalents, and investments totaling over $31 million, with no outstanding debt.
New Contract Opportunities: 4. New Contract Awards: The company announced $2 million in new ATC orders and anticipates an additional $2 million to $4 million in orders by early 2025, indicating a robust pipeline.
R&D Expense Reduction: 5. R&D Investment Decrease: Research and development expenses decreased by 30% to $361,000 from $513,000 in the prior year, allowing more resources to be allocated towards growth initiatives.
Negative
APC Revenue Decline: 1. Decline in APC Revenue: APC segment revenue decreased to $3.2 million from $3.7 million in the prior year, primarily due to customer-driven delays and project execution issues.
Declining Gross Margin: 2. Decreased Gross Margin: Consolidated gross margin fell to 43% from 45% year-over-year, with APC segment gross margin dropping to 35% from 40% due to changes in product and project mix.
Operating Loss Comparison: 3. Operating Loss: The company reported an operating loss of $179,000 compared to an operating income of $133,000 in the same quarter last year, reflecting decreased consolidated revenue and gross profit.
Backlog Reduction: 4. Lower Backlog: Consolidated APC segment backlog decreased to $6.4 million from $7.5 million at the end of the previous year, indicating a reduction in future revenue visibility.
Adjusted EBITDA Decline: 5. Adjusted EBITDA Loss: The adjusted EBITDA loss was $35,000 compared to an adjusted EBITDA of $352,000 in the same period last year, highlighting a significant decline in operational profitability.
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FTEK Earning Call Sentiment
Fuel Tech, Inc (FTEK) Q3 2024 Earnings Call Transcript
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00:00
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FTEK.O
0.98%Positive
The earnings call reveals several concerns: declining APC revenues, reduced gross margins, and operating losses. Market adoption challenges and project execution delays also emerged as risks. The Q&A highlighted uncertainties, such as unpredictable timelines for regulatory actions and lack of cost recovery for demonstrations. Despite some positive aspects like FUEL CHEM revenue growth, the overall sentiment is negative due to financial declines and market uncertainties, likely leading to a negative stock price movement over the next two weeks.
