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NANO Nuclear Energy to Report Q4 Earnings: How to Play the Stock?

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Key Takeaways

  • NANO Nuclear Energy will report Q4 results on Dec. 18, with estimates unchanged at a 33 cents loss.
  • NNE made key uranium supply deals and advanced microreactor tech during the fourth quarter.
  • NANO signed a $6.2M deal to sell its ODIN microreactor design and secured a new federal contract.

NANO Nuclear Energy Inc. (NNE - Free Report) is scheduled to release fiscal fourth-quarter results on Dec. 18, after market close. The Zacks Consensus Estimate is currently pegged at a loss of 33 cents per share.
 
Fiscal fourth-quarter earnings estimates have remained unchanged over the past 60 days. The bottom-line projection indicates a decrease of 312.5% from the year-ago number.

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NNE Stock’s Earnings Surprise History

NANO Nuclear Energy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in another quarter, resulting in the average negative surprise of 72.14%.

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What the Zacks Model Unveils

Our proven model does not predict an earnings beat for NANO Nuclear Energy 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. That is not the case here, as you can see below.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

NNE’s Earnings ESP: NANO Nuclear Energy has an Earnings ESP of 0.00%.

Zacks Rank of NNE: The company currently carries a Zacks Rank #3.
 
Some companies in the same industry with the right combination of the two factors for an earnings surprise in the coming season are Bloom Energy (BE - Free Report) , Clearway Energy Company (CWEN - Free Report) and Gevo Inc. (GEVO - Free Report) . BE, CWEN and GEVO have an Earnings ESP of +12.00%, +89.39% and +14.29%, respectively. All three currently carry a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped NNE’s Q4 Earnings

Uranium plays a vital role in the successful operation of nuclear power plants. During the fiscal fourth quarter, NANO Nuclear Energy has taken steps to secure fuel for its small nuclear plants. NANO Nuclear Energy entered into a Memorandum of Understanding with UrAmerica Ltd. to evaluate strategic opportunities throughout Argentina’s uranium supply chain. The agreement formalizes prior discussions aimed at securing a dependable uranium source for NANO Nuclear Energy’s future fuel requirements.
 
NANO Nuclear Energy further strengthens its footprint in Argentina with the signing of a Memorandum of Understanding with Dioxitek S.A., the country’s sole producer of uranium feedstock for nuclear fuel fabrication.

The company has completed the assembly of its proprietary Annular Linear Induction Pump technology prototype and expects to begin commercial sales efforts by late this year or next. The milestone demonstrates the company’s ability to advance its technology from initial design through construction and successful demonstration.

During the quarter, NANO Nuclear Energy has entered into a letter of intent to sell its ODIN low-pressure coolant microreactor design and related intellectual property to UK-based Cambridge Atom Works. The deal is valued at $6.2 million, consisting of a $250,000 non-refundable upfront payment, a $5.95 million payment in 2026 and future low single-digit royalties if the technology is commercialized.

NANO Nuclear Energy also received a contract to explore the feasibility of deploying its advanced KRONOS MMR Energy System at Joint Base Anacostia-Bolling in Washington, D.C.

All the above initiatives and agreements will assist in making NANO Nuclear Energy’s static and portable microreactors ready for commercial launch.

NNE Stock’s Price Performance

NNE’s shares have gained 14.3% in the last month compared with the Zacks Alternative Energy – Other industry’s rise of 2.8%.

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NNE Is Trading at a Premium Valuation

NANO Nuclear Energy is currently trading at a premium valuation compared with its industry, with the price-to-book (P/B) TTM at 6.52X. The industry is currently trading at 3.5X.

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Investment Thesis

NANO Nuclear Energy’s innovative microreactor technology offers significant potential to deliver clean energy solutions. The company’s microreactors are at various stages of development and expected to reach commercial readiness by around 2030, subject to successful testing and regulatory approvals.

The company has been very active in developing its microreactors. NANO Nuclera Energy has entered into a partnership and agreement to secure nuclear fuel supply and test, gain regulatory approval for and ultimately commercialize its advanced nuclear microreactors in development.

The rising demand for clean energy and bottlenecks in transmission and distribution line development will create huge demand for the portable microreactor of NANO Nuclear Energy.

Summing Up

NANO Nuclear Energy has taken quite a few steps in the quarter, which will assist in making it nuclear reactor-ready for commercial operations.

The company will benefit from the rising demand for reliable and clean power, fueled by the rapid growth of AI-driven data centers, the usage of more electric vehicles and the need for electricity in more remote areas.

 

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