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What's in the Cards for Fuel Tech (FTEK) in Q1 Earnings?

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Fuel Tech, Inc. (FTEK - Free Report) is scheduled to report first-quarter 2019 results on May 13, after market close.

The company reported better-than-expected earnings results in the fourth quarter of 2018, wherein its earnings of 4 cents beat the Zacks Consensus Estimate of breakeven.

In the past three months, the company’s share price increased 114.8%, outperforming the industry’s increase of 13.8%.

Let us see how things are shaping up for Fuel Tech this quarter.

Factors Influencing Fuel Tech’s Performance

We believe that providers of pollution control equipment and services are currently realizing benefits of strict government regulations, pollution-related risks, growing demand in emerging nations and increasing awareness among public. For instance, the company continues to market its technologies successfully in many European countries, in the wake of the European Union's Industrial Emissions Directive in BREF. These positives are likely to be reflected in the company’s upcoming financial results.

Also, Fuel Tech’s results can be influenced by a number of company-specific matters. Notably, increased adoption and growing requirement for the company’s advanced proprietary solutions in energy industry are likely to have stoked growth in the first quarter. Also, investments in the water and wastewater treatment market will be conducive to its top line.

The company’s FUEL CHEM segment’s results might be influenced by efforts to improve sales channel, building strong customer relationship, and the addition of a new coal-fired unit at an existing customer in the United States. As a matter of fact, strong demand for advanced emission control technologies from coal-fired power generation customers across the globe will prove conducive to top-line growth in the first quarter.

Also, Air Pollution Control segment will benefit from a strong pipeline of contract opportunities on a global basis and efforts on product developments.

However, rising cost of sales and operating expenses are major concerns for the company. We believe that unwarranted rise in costs and expenses might be detrimental to its first-quarter performance.

Earnings Whispers

Our proven model provides some idea about the stocks that are about to release earnings results. Per the model, a stock needs a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The case with Fuel Tech has been provided below.

Earnings ESP: Fuel Tech has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and Most Accurate Estimate for the quarter are pegged at breakeven.

Fuel Tech, Inc. Price and EPS Surprise

Fuel Tech, Inc. Price and EPS Surprise | Fuel Tech, Inc. Quote

Zacks Rank: The company currently sports a Zacks Rank #1.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Stocks to Consider

Here are some companies that you may want to consider as these have the right combination of elements to post an earnings beat this quarter, according to our model.

Chaparral Energy, Inc. presently has an Earnings ESP of +110.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Commercial Metals Company (CMC - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank #3.

Axsome Therapeutics, Inc. (AXSM - Free Report) currently has an Earnings ESP of +12.90% and a Zacks Rank #3.

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