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Ameresco (AMRC) to Report Q4 Earnings: What's in Store?

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Ameresco, Inc. (AMRC - Free Report) is set to report fourth-quarter 2020 results on Mar 1, after market close. In the last reported quarter, the company delivered an earnings surprise of 52.00%.

Moreover, in the trailing four quarters, Ameresco came up with a solid earnings surprise of 68.56%, on average.

Let's take a closer look at the factors likely to influence the company’s upcoming quarterly results.

Factors to Consider

Since the third quarter of 2020, Ameresco has increased its focus on project execution, which in turn is expected to have boosted its top-line performance in the fourth quarter.

Ameresco, Inc. Price and EPS Surprise

Ameresco, Inc. Price and EPS Surprise

Ameresco, Inc. price-eps-surprise | Ameresco, Inc. Quote

However, the COVID-19 pandemic related slowdown in new business development activity might have hurt its revenue growth to some extent in the soon-to-be reported quarter.

Notably, the Zacks Consensus Estimate for fourth-quarter revenues, pegged at $262.6 million, indicates a 14.4% decline from the year-ago quarter’s reported figure.

Although the company has implemented tight expense control, in the post pandemic environment, its selling, general and administrative expenses are expected to have increased.

The company has lately been able to execute on a number of new projects and pulled forward some existing contracts, driven by improved site access in many locations. This must have pushed up its overall operating expenses, thereby hampering its bottom line performance.

The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at 30 cents indicating a 34.8% decline from the year-ago quarter’s figure.

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 this is not the case here.

Earnings ESP: Ameresco has an Earnings ESP of 0.00%. 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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

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

Gevo, Inc. (GEVO - Free Report) is expected to release fourth-quarter 2020 results on Mar 18. It has an Earnings ESP of +25.00% and a Zacks Rank #3.

Falcon Minerals Corp. (FLMN - Free Report) is expected to release fourth-quarter 2020 results soon. It has an Earnings ESP of +16.67% and a Zacks Rank #3.

Recent Sector Release

TC Energy’s (TRP - Free Report) fourth-quarter 2020 adjusted earnings of 88 cents per share came ahead of the Zacks Consensus Estimate as well as the year-ago quarter’s figure of 78 cents.

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