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Orion (OESX) Q4 Loss Wider Than Expected, Gross Margin Falls Y/Y
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Orion Energy Systems, Inc.’s (OESX - Free Report) shares declined 0.67% in the pre-market trading session on Jun 5 after it reported tepid fourth-quarter fiscal 2023 (ended Mar 31, 2023) results. Both its top and bottom lines missed the respective Zacks Consensus Estimate.
Orion’s CEO, Mike Jenkins, stated, “We believe Orion is now well positioned with a more diversified base of solutions and customers. Demand is being driven by the substantial cost savings and environmental benefits we deliver, as well as our deep expertise and proven ability to deliver complex turnkey product and service solutions to enterprises with hundreds or even thousands of locations.”
Mike added, “Our customers are increasingly challenged by the growing complexity of integrating LED lighting, controls and Internet of Things solutions, pressing new demands for EV charging infrastructure and the technical expertise required to integrate and maintain these electrical systems.”
Delving Deeper
The company reported a net loss of 8 cents per share, which was 14.3% wider than the consensus estimate of 7 cents per share. In the year-ago period, it generated a loss of 4 cents.
Orion Energy Systems, Inc. Price, Consensus and EPS Surprise
Net sales during the quarter totaled $21.6 million, which lagged the consensus mark of $22.4 million by 3.6%. The reported figure decreased by 2.3% from $22.1 million in the prior-year quarter. The downside was due to the expected year-over-year decrease in activity with Orion’s largest customer and a global online retailer, as well as delays in the activation of certain large LED lighting projects.
Operating Highlights
Gross margin contracted 190 basis points (bps) on a year-over-year basis to 21.9% due to changes in the product and service mix.
Operating expenses increased 45.5% from the prior-year period. The increase was primarily due to acquisition-related costs and increased G&A expenses.
Adjusted EBITDA in the quarter was $1.6 million, up from $0.37 million a year ago.
Financials
As of Mar 31, 2023, the company had cash and cash equivalents of $16 million compared with $14.5 million at the end of fiscal 2022. In fiscal 2023, net cash used in operating activities totaled $2.29 million compared with $0.11 million in fiscal 2022.
Fiscal 2024 Outlook
The company expects revenues of approximately $100 million, reflecting growth of 30% or more compared with fiscal 2023. A greater proportion of revenues is likely to be generated in the second half of fiscal 2024. Of this projection, $34 million is likely to be generated by maintenance services and EV charging solutions and $64 million from LED lighting products and solutions, including national account projects, ESCO partners and distribution channel sales.
Quanta Services Inc. (PWR - Free Report) reported better-than-expected first-quarter 2023 results, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate.
The company continues to experience high demand for its infrastructure solutions that support energy transition initiatives and increase reliability, safety and efficiency. Notably, project activities associated with renewable generation has been going strong and is expected to continue throughout the year.
KBR, Inc. (KBR - Free Report) reported strong results in first-quarter 2023, where earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
KBR’s top and bottom lines gained on strong underlying growth, margin expansion and excellent bookings in the reported quarter.
Fluor Corporation (FLR - Free Report) reported mixed first-quarter 2023 results. Earnings missed the Zacks Consensus Estimate but increased from the previous year’s reported figure. Revenues surpassed the consensus mark and grew from the year-ago level.
FLR’s underlying performance continues to be impacted by a few remaining legacy projects.
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Orion (OESX) Q4 Loss Wider Than Expected, Gross Margin Falls Y/Y
Orion Energy Systems, Inc.’s (OESX - Free Report) shares declined 0.67% in the pre-market trading session on Jun 5 after it reported tepid fourth-quarter fiscal 2023 (ended Mar 31, 2023) results. Both its top and bottom lines missed the respective Zacks Consensus Estimate.
Orion’s CEO, Mike Jenkins, stated, “We believe Orion is now well positioned with a more diversified base of solutions and customers. Demand is being driven by the substantial cost savings and environmental benefits we deliver, as well as our deep expertise and proven ability to deliver complex turnkey product and service solutions to enterprises with hundreds or even thousands of locations.”
Mike added, “Our customers are increasingly challenged by the growing complexity of integrating LED lighting, controls and Internet of Things solutions, pressing new demands for EV charging infrastructure and the technical expertise required to integrate and maintain these electrical systems.”
Delving Deeper
The company reported a net loss of 8 cents per share, which was 14.3% wider than the consensus estimate of 7 cents per share. In the year-ago period, it generated a loss of 4 cents.
Orion Energy Systems, Inc. Price, Consensus and EPS Surprise
Orion Energy Systems, Inc. price-consensus-eps-surprise-chart | Orion Energy Systems, Inc. Quote
Net sales during the quarter totaled $21.6 million, which lagged the consensus mark of $22.4 million by 3.6%. The reported figure decreased by 2.3% from $22.1 million in the prior-year quarter. The downside was due to the expected year-over-year decrease in activity with Orion’s largest customer and a global online retailer, as well as delays in the activation of certain large LED lighting projects.
Operating Highlights
Gross margin contracted 190 basis points (bps) on a year-over-year basis to 21.9% due to changes in the product and service mix.
Operating expenses increased 45.5% from the prior-year period. The increase was primarily due to acquisition-related costs and increased G&A expenses.
Adjusted EBITDA in the quarter was $1.6 million, up from $0.37 million a year ago.
Financials
As of Mar 31, 2023, the company had cash and cash equivalents of $16 million compared with $14.5 million at the end of fiscal 2022. In fiscal 2023, net cash used in operating activities totaled $2.29 million compared with $0.11 million in fiscal 2022.
Fiscal 2024 Outlook
The company expects revenues of approximately $100 million, reflecting growth of 30% or more compared with fiscal 2023. A greater proportion of revenues is likely to be generated in the second half of fiscal 2024. Of this projection, $34 million is likely to be generated by maintenance services and EV charging solutions and $64 million from LED lighting products and solutions, including national account projects, ESCO partners and distribution channel sales.
Zacks Rank & Recent Construction Releases
OESX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quanta Services Inc. (PWR - Free Report) reported better-than-expected first-quarter 2023 results, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate.
The company continues to experience high demand for its infrastructure solutions that support energy transition initiatives and increase reliability, safety and efficiency. Notably, project activities associated with renewable generation has been going strong and is expected to continue throughout the year.
KBR, Inc. (KBR - Free Report) reported strong results in first-quarter 2023, where earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
KBR’s top and bottom lines gained on strong underlying growth, margin expansion and excellent bookings in the reported quarter.
Fluor Corporation (FLR - Free Report) reported mixed first-quarter 2023 results. Earnings missed the Zacks Consensus Estimate but increased from the previous year’s reported figure. Revenues surpassed the consensus mark and grew from the year-ago level.
FLR’s underlying performance continues to be impacted by a few remaining legacy projects.