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ClearSign Technologies (CLIR) Q3 Earnings Surpass Estimates

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ClearSign Technologies Corporation (CLIR - Free Report) reported an adjusted loss of 3 cents per share in third-quarter 2023, beating the Zacks Consensus Estimate of a loss of 4 cents per share. The bottom line remained flat year over year.

The company reported net sales of $0.09 million in the reported quarter, a decrease of 73% from the year-ago quarter’s level. The top line missed the Zacks Consensus Estimate of $0.27 million.

Operational Update

The cost of sales amounted to $0.06 million in the third quarter, down 69.7% from the year-ago quarter’s levels. The gross profit totaled $0.02 million, down from the year-ago quarter’s $0.1 million. The gross margin was 28.2% during the reported quarter compared with 38% in the first quarter of fiscal 2023.

General and administrative expenses were $1.4 million in the quarter, flat year over year. Operating loss was $1.5 million in comparison with the prior-year quarter’s $1.4 million.

Financial Condition

The company reported cash and cash equivalents of $7.2 million as of Sep 30, 2023, in comparison with $6.4 million as of Dec 31, 202 2. As of September 30, 2023, there were around 38.6 million shares of common stock issued and outstanding.

Other Updates

ClearSign completed its p hase 1 testing of its ultra-low NOx 100% hydrogen burner. The company was awarded a government grant of $1.65 million for P hase 2 through the SBIR program.

ClearSign announced that SoCalGas is collaborating with them and supporting its project to develop a flexible hydrogen-fueled, ultra-low NOx process burner. SoCalGas will support the introduction and field demonstration of the hydrogen-capable ClearSign Core burner technology by contributing an additional $500,000 to the project.

Price Performance

ClearSign's shares have gained 31.9% in the past year compared with the industry’s growth of 12.14%.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank and Stocks to Consider

ClearSign currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are Brady (BRC - Free Report) , Applied Industrial Technologies (AIT - Free Report) and Bodycote (BYPLF - Free Report) . BRC currently sports a Zacks Rank #1 (Strong Buy) and AIT and BYPLF each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Brady’s 2023 earnings per share is pegged at $3.62. The consensus estimate for 2023 earnings has moved 13% north in the past 60 days and suggests year-over-year growth of 9.9%. The company has a trailing four-quarter average earnings surprise of 7.2%. Shares of BRC rallied 17.7% in a year.

Applied Industrial has an average trailing four-quarter earnings surprise of 15%. The Zacks Consensus Estimate for AIT’s 2023 earnings is pinned at $9.13 per share, which indicates year-over-year growth of 2%. Estimates have moved up 2% in the past 60 days. The company’s shares gained 27% in a year’s time.

The Zacks Consensus Estimate for Bodycote’s 2023 earnings is pegged at 60 cents per share. The consensus estimate for 2023 earnings has remained unchanged in the past 60 days. BYPLF shares gained 47.3% in a year’s time.

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