Continue Reading Below
Shares of energy-efficiency services and equipment companyAmeresco (NYSE: AMRC) are up 17.3% as of 10:45 a.m. EST today after the company reported earnings that blow by analyst expectations and provided 2017 guidance that suggests this year will be stronger than 2016.
IMAGE SOURCE: AMERESCO INC.
Pretty much across the board, Ameresco's results were strong. Revenue for both products and services were up modestly, but what really mattered is that those marginal gains in revenue flowed to the bottom line in a big way. Even tough total revenue for the quarter was$174.2 million, compared to $173.8 million this time last year, net income improved from a loss of $1.1 million to $3.3 million in net income, or $0.07 per share. Consensus estimates compiled by S&P Global Market Intelligence had Ameresco's results coming in at $0.04 per share. It's also worth noting that the company's total project backlog remained flat, at $1.49 billion.
According to 2017 guidance, the company looks to build on a strong 2016. It now expects to generate $665 million to $700 million in sales and net income per share between $0.37 and $0.47. Management did note, though, that this guidance does not include any affects from its non-controlling interest activities, any charges related to the SunEdison bankruptcy, or any restructuring charges that may occur in the coming year.
Continue Reading Below
Of that $1.49 billion in project backlog, $534 million of it is fully contracted, up 20% from the third quarter. So, that record backlog it posted in the prior quarter is getting converted more and more to items that will drive long-term cash flows. This was certainly one of Ameresco's better quarters, but results for this company have always been lumpy, so keep that in mind as it reports results throughout 2017.
10 stocks we like better than Ameresco
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now...and Ameresco wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 6, 2017.