Energy Recovery Earnings: What Investors Should Watch

Energy Recovery (NASDAQ:ERII) will report earnings after markets close on Wednesday, May 8th. Energy Recovery Inc. develops and manufactures energy recovery devices utilized in the water desalination industry. The Company’s technology is used to drive sea water through filtering membranes to produce fresh water.

Here is your Cheat Sheet to Energy Recovery Earnings:

Earnings Expectations: Analysts expect earnings of $-0.05 per share on revenues of $7.35 million.

Analyst Trends:

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 loss of $0.04 to a loss $0.05. For the current year, the average estimate is a loss of $0.08, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Energy Recovery has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 52.12 47.01 45.85 28.05 42.63
Diluted EPS ($) 0.18 0.07 -0.07 -0.50 -0.16

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 6.12 4.76 12.30 10.50 15.08
Diluted EPS ($) -0.1904 -0.09 0.01 -0.04 -0.0429

Past Performance:
Energy Recovery has beat analyst estimates 1 time in the past four quarters. This is not consistent enough to get bullish yet.

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