Energy recovery device manufacturer Energy Recovery (NASDAQ:ERII) will be reporting results tomorrow afternoon. Here’s what you need to know.
Energy Recovery met analysts’ revenue expectations last quarter, reporting revenues of $67.08 million, up 17.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
Is Energy Recovery a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Energy Recovery’s revenue to grow 81.7% year on year to $21.97 million, a reversal from the 9.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0 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. Energy Recovery has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Energy Recovery’s peers in the water infrastructure segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Mueller Water Products delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 2.9%, and Xylem reported revenues up 1.8%, topping estimates by 1.5%. Xylem traded up 4.1% following the results.
Read our full analysis of Mueller Water Products’s results here and Xylem’s results here.
There has been positive sentiment among investors in the water infrastructure segment, with share prices up 10.9% on average over the last month. Energy Recovery is up 6% during the same time and is heading into earnings with an average analyst price target of $19.67 (compared to the current share price of $15.33).
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