Ameresco Earnings: Here’s Why Investors are Selling Shares Now

Ameresco, Inc. (NYSE:AMRC) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.57%

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Ameresco, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.04 in the quarter versus EPS of $0.03 in the year-earlier quarter.

Revenue: Decreased 24.88% to $110.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ameresco, Inc. reported adjusted EPS loss of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.03. It missed the average revenue estimate of $126.67 million.

Quoting Management: “We had anticipated a more challenging quarter than the typical first quarter seasonality of our business. While revenue was below our expectations, stronger than expected gross profit led to bottom line results ahead of plan,” stated George P. Sakellaris, President and Chief Executive Officer of Ameresco. “We remain encouraged by the continued demand for our energy efficiency solutions as evidenced by an increase in total construction backlog in the first quarter, driven by a 34% year-over-year improvement in awarded projects. We are reaffirming our 2013 guidance based upon our current expectations for revenue growth and profitability in the second half of the year.”

Key Stats (on next page)…

Revenue decreased 29.69% from $156.59 million in the previous quarter. EPS decreased to $-0.04 in the quarter versus EPS of $0.13 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.13 to a profit $0.10. For the current year, the average estimate has moved down from a profit of $0.64 to a profit of $0.43 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]