Energy and renewable energy projects company Ameresco (NYSE: AMRC) will be reporting earnings tomorrow afternoon. Here’s what to expect.
Ameresco beat analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $500.9 million, up 49.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.
Is Ameresco a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Ameresco’s revenue to grow 19.3% year on year to $526.6 million, slowing from the 33.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.78 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ameresco has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Ameresco’s peers in the construction and engineering segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Quanta delivered year-on-year revenue growth of 13.3%, missing analysts’ expectations by 1%, and MDU Resources reported a revenue decline of 52.8%, falling short of estimates by 32.3%. Quanta traded down 7.8% following the results while MDU Resources was also down 7.8%.
Read our full analysis of Quanta’s results here and MDU Resources’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the construction and engineering stocks have shown solid performance, the group has generally underperformed, with share prices down 5.7% on average over the last month. Ameresco is down 15.3% during the same time and is heading into earnings with an average analyst price target of $36.80 (compared to the current share price of $18.21).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
