Fuel-Tech Earnings: Here’s Why Investors are Selling Shares Now

Fuel-Tech, Inc. (NASDAQ:FTEK) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 7.42%.

Fuel-Tech, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.05 in the quarter versus EPS of $0.00 in the year-earlier quarter.

Revenue: Rose 39.12% to $29.09 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fuel-Tech, Inc. reported adjusted EPS income of $0.05 per share. By that measure, the company beat the mean analyst estimate of $0.02. It beat the average revenue estimate of $27.5 million.

Quoting Management: Douglas G. Bailey, Chairman, President, and Chief Executive Officer, commented, “A combination of new international and domestic orders, and continuing backlog conversion produced solid expected results in the second quarter. International interest for our solutions is rising, and we believe that the U.S. market is firming as it acclimates to a purchasing environment currently driven largely by consent decree activity. Across markets, our proprietary emissions control solutions are being recognized for their efficacy and diverse applications. Through the first six months of 2013, we announced APC contract awards with a value of approximately $29.0 million and, subsequent to quarter end, announced additional APC orders valued at $6.4 million.”

Key Stats (on next page)…

Revenue increased 29.4% from $22.48 million in the previous quarter. EPS increased to $0.05 in the quarter versus EPS of $0.00 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.05 and has not changed. For the current year, the average estimate has moved down from a profit of $0.12 to a profit of $0.1 over the last ninety days.

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