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Ameresco (AMRC) to Report Q2 Earnings: What's in the Cards?

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Ameresco, Inc. (AMRC - Free Report) is set to release second-quarter 2020 results on Aug 3, after market close.

In the last reported quarter, the company delivered an earnings surprise of 114.29%. In the trailing four quarters, the company came up with an earnings surprise of 26.84%, on average.

Let's take a closer look at the factors influencing Ameresco’s upcoming results.

Factors at Play

During the first-quarter earnings call, the company announced that its revenues might decline sequentially in the second quarter due to the proactive pull forward of project revenues worth $20 million that contributed to its strong first-quarter revenues. Further, management expects revenues to take a hit in the second quarter, primarily due to project delays.

Nevertheless, given the company’s expertise in providing comprehensive energy services across wide territories, including the United States, Canada and the United Kingdom, the aforementioned impacts might not have dragged down its overall revenues in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $200 million, indicating a 1.1% rise from the year-ago quarter’s tally.

Due to the ongoing COVID-19 crisis, the company expects new business activities to resume later, during the third and fourth quarters. Additionally, a combination of revenue shifts along with incremental remobilization costs is expected to have reduced its second-quarter operating income by approximately $6 million. This, in turn, might have weighed on the bottom line.

In line with this, the Zacks Consensus Estimate for Ameresco’s second-quarter earnings is pegged at 10 cents per share, indicating a decline of 44.4% from the prior-year quarter's reported number.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Ameresco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here as elaborated below.

Earnings ESP: Ameresco has an Earnings ESP of -36.84%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ameresco, Inc. Price and EPS Surprise

Investors can also consider the following players from the same sector that have the right combination of elements to post an earnings beat this season.

Bonanza Creek Energy, Inc. (BCEI - Free Report) is set to release second-quarter 2020 results on Aug 6. It has an Earnings ESP of +13.66% and a Zacks Rank #1.

Gevo Inc. (GEVO - Free Report) is set to release second-quarter 2020 results on Aug 10. It has an Earnings ESP of +40.00% and a Zacks Rank #2.

A Recent Sector Release

Bloom Energy Corporation (BE - Free Report) reported a second-quarter 2020 loss of 38 cents per share, narrower than the Zacks Consensus Estimate of a loss of 59 cents.

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