Energy Recovery (ERII) Reports Earnings Tomorrow: What To Expect

Energy recovery device manufacturer Energy Recovery (NASDAQ:ERII) will be announcing earnings results this Wednesday after market close. Here’s what to expect.

Energy Recovery beat analysts’ revenue expectations last quarter, reporting revenues of $32 million, down 17.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Is Energy Recovery a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Energy Recovery’s revenue to grow 23.1% year on year, improving from the 17.3% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Energy Recovery has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Energy Recovery’s peers in the water infrastructure segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Watts Water Technologies delivered year-on-year revenue growth of 15.7%, beating analysts’ expectations by 2.3%, and Mueller Water Products reported revenues up 4.6%, topping estimates by 2%. Watts Water Technologies traded up 6.8% following the results while Mueller Water Products was also up 1.5%.

Read our full analysis of Watts Water Technologies’s results here and Mueller Water Products’s results here.

There has been positive sentiment among investors in the water infrastructure segment, with share prices up 4.3% on average over the last month. Energy Recovery is up 12.7% during the same time and is heading into earnings with an average analyst price target of $19.05 (compared to the current share price of $16.08).

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