OPAL Earnings Prediction
The chart below shows how OPAL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OPAL sees a +0.90% change in stock price 10 days leading up to the earnings, and a -3.00% change 10 days following the report. On the earnings day itself, the stock moves by -0.70%. This data can give you a slight idea of what to expect for the next quarter's release.
OPAL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
84.05M
18.21%
18.46%
Gross Margin
33.03%
48.38%
25.45%
Operating Margin
9.50%
242.96%
281.53%
Net Margin
20.35%
6259.38%
656.51%
EPS
0.09
1000.00%
-1000.00%
No Data Available
OPAL Earnings Analysis
OPAL Fuels Inc. Class A Common Stock Corporation (OPAL.O) Earnings Conference Call
Positive
RNG Production Surge: 1. Increased RNG Production: OPAL Fuels achieved a 40% year-over-year increase in RNG production, reaching 1 million MMBtus for Q3 2024, driven by contributions from the Emerald and Prince William projects.
Q3 Revenue Increase: 2. Revenue Growth: The company reported Q3 2024 revenues of $84 million, a significant increase from $71.1 million in Q3 2023, primarily due to higher production and environmental credit sales.
Adjusted EBITDA Increase: 3. Strong Adjusted EBITDA: Adjusted EBITDA for the quarter was approximately $31 million, up from $16.5 million in Q3 2023, reflecting improved performance across business segments.
ITC Monetization Success: 4. Successful ITC Monetization: OPAL Fuels successfully monetized $8.6 million in investment tax credits (ITC) during Q3, marking the first monetization of ITC credits for the company.
Operating Capacity Expansion: 5. Expansion of Operating Capacity: The commissioning of the Sapphire and Polk RNG projects increased OPAL's operational capacity to 8.8 million MMBtus, a 3.6 million MMBtus increase in 2024 alone.
Negative
Renewable Power Revenue Decline: 1. Declining Renewable Power Revenue: Renewable power revenue decreased to $12.8 million in Q3 2024, down from $13.7 million in Q3 2023, indicating a negative trend in this segment.
Project Development Expenses: 2. High Project Development Costs: The adjusted EBITDA for Q3 2024 included a $3.8 million add-back for project development and startup costs, which are expected to continue until mid-2025, indicating ongoing financial strain.
Capital Expenditure Surge: 3. Increased Capital Expenditures: Year-to-date capital expenditures reached $95.6 million, which includes significant investments in equity method projects, suggesting a heavy financial burden on the company.
Liquidity Position Concerns: 4. Liquidity Concerns: As of September 30, 2024, OPAL had $231.6 million drawn down on its credit facility, raising concerns about its liquidity position amidst ongoing capital needs.
Equity Method Revenue Growth: 5. Limited Growth in Equity Method Revenues: OPAL's share of revenues from equity method investments was $11.7 million in Q3 2024, compared to $4.7 million in Q3 2023, indicating a slower growth rate in this area despite overall revenue increases.
OPAL FAQs
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OPAL Earning Call Sentiment
OPAL Fuels Inc. (OPAL) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
OPAL.O
-4.89%Positive
The earnings call summary shows strong financial performance with increased revenue, EBITDA, and net income. The Q&A highlights management's confidence in regulatory support and market opportunities, despite some unclear responses. The positive factors include growth in RNG production, favorable election outcomes, and potential M&A opportunities. These outweigh the slight decrease in renewable power revenue and unclear guidance on ITC credits, suggesting a positive stock price movement in the short term.
