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What's in Store for Advanced Emissions (ADES) in Q3 Earnings?

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Advanced Emissions Solutions, Inc. is scheduled to report third-quarter 2020 results on Nov 9, after market close.

In the past three months, the company’s shares have gained 12.4% compared with the industry’s growth of 6.3%.

Factors to Influence Q3 Results

As a provider of pollution control equipment and services, Advanced Emissions is expected to have benefited from stringent government regulations and rising awareness about pollution-related risks among people.

Advanced Emissions’ earnings are also likely to have benefited from solid offerings of emission control solutions as well as its strong ADA Carbon Solutions business. Notably, strength in the ADA Carbon Solutions business, backed by solid product and service offerings across coal-fired power plant, industrial and water treatment end markets is likely to have supported its performance.

Moreover, the company’s earnings might have gained from its efforts to improve sales channel, enhance operational efficiency and create strong customer relationship. In addition, some of Advanced Emissions’ actions, including cost-reduction, are expected to have helped it maintain a healthy margin.

However, the overall low demand environment for its products and services, primarily due to cheap alternative energy sources and lower aggregate energy demand in the United States on account of lower overall economic activity, is expected to have had a bearing on its top-line.

Moreover, lower distributions from Tinuum might have affected its earnings. In addition, coronavirus-led supply chain inefficiencies are expected to have affected its performance in the third quarter.

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