Ameresco Beats on EPS But GAAP Results Lag

Ameresco (NYSE: AMRC  ) reported earnings on March 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ameresco missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.

Gross margins expanded, operating margins dropped, net margins dropped.

Revenue details
Ameresco chalked up revenue of $156.6 million. The five analysts polled by S&P Capital IQ expected a top line of $165.9 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $188.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.13. The one earnings estimate compiled by S&P Capital IQ predicted $0.10 per share. Non-GAAP EPS of $0.13 for Q4 were 28% lower than the prior-year quarter's $0.18 per share. GAAP EPS of $0.11 for Q4 were 42% lower than the prior-year quarter's $0.19 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 21.1%, 250 basis points better than the prior-year quarter. Operating margin was 4.6%, 260 basis points worse than the prior-year quarter. Net margin was 3.1%, 130 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $125.4 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $639.8 million. The average EPS estimate is $0.42.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 423 members out of 433 rating the stock outperform, and 10 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give Ameresco a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ameresco is outperform, with an average price target of $12.08.

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