Ameresco (AMRC) Beats, Guides About In Line, But Shares Suffer

Ameresco (AMRC) reported earnings results this morning that beat analyst estimates but traders were clearly looking for more from the company with shares off 10% in early trading.  The company reported and EPS of .17/share on revenues of $179 million which was ahead of the analyst estimates for .15/share on revenues of $153 million.  I suppose traders are selling the stock after a big run because the EPS number was significantly below the year ago quarter of .23/share.  The company attributed the drop in net income this quarter to a higher effective tax rate and an increased interest expense. 

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CEO George Sakellaris commented on the quarter: “Energy efficiency solutions are gaining traction. Commercial, industrial and government organizations are realizing that implementing clean energy solutions not only benefits the environment, but their constituents as well through lower costs, improved cash flows and greener footprints.  Ameresco benefited from these trends, finishing our first year as a public company by delivering strong fourth quarter financial results and achieving a record year across the board. We will continue to focus on effectively executing our strategic plan, implementing and efficiently replacing our backlog, and exploring strategic opportunities that we believe will increase our market penetration and broaden our reach. We believe we are well-positioned for future growth.”

Looking ahead, the company expects an EPS in the range of $0.75 – $0.79 for this year on revenues of $690 – $705 million.  That compares with the analyst estimate of $0.77 on revenues of $689, so about inline with what analyst expected.  Perhaps traders were looking for stronger guidance as well.

All in all, this was a solid report out of Ameresco and the sell off this morning may just create a decent buying opportunity in my opinion. 

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