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What's in Store for Advanced Emissions (ADES) in Q1 Earnings?

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Advanced Emissions Solutions, Inc. is scheduled to release first-quarter 2019 results on May 6, after the market closes.

The company delivered weaker-than-expected results in three of the last four quarters while surpassed estimates once. Average earnings surprise was a negative 2.31%. In the last reported quarter, its earnings of 36 cents per share lagged the Zacks Consensus Estimate of 37 cents by 2.70%.

In the past three months, shares of this pollution control company have decreased 0.2% against the industry’s growth of 14.2%.



Let us see how things are shaping up for Advanced Emissions this quarter.

Factors to Affect Q1 Results

We believe that providers of pollution control equipment and services are currently reaping benefits of stringent government regulations, pollution-related risks, growing demand in emerging nations and rising awareness among people.

Apart from these broader factors, Advanced Emissions’ results can be influenced by a number of company-specific matters. Of all, solid offerings of emission control solutions as well as synergistic gains from acquired assets will be boons for the company’s results. Notably, ADA Carbon Solutions, LLC — acquired in December 2018 — will help in strengthening Power Generation and Industrial segments’ results.

The company’s Refined Coal segment’s results might be influenced by efforts to improve sales channel, enhance operational efficiency, building healthy customer relationship, focus on cost reduction and benefiting from the refined coal tax equity market. Also, investments in refined coal facilities will yield annual benefits of $5-7 million for every new facility added.

For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $19 million, above $4 million generated in the year-ago quarter. Also, earnings estimates of 64 cents for the quarter reflect an increase from 37 cents recorded in the year-ago quarter.

However, inflation in costs of consumables as well as higher legal and professional fees might be concerning. Also, any decline in distributions from Tinuum will likely affect results.

Earnings Whispers

Our proven model provides some idea about the stocks that are about to release earnings results. Per the model, a stock needs a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The case with Advanced Emissions has been provided below.

Earnings ESP: Advanced Emissions has an Earnings ESP of 0%. Both the Zacks Consensus Estimate and Most Accurate Estimate for the quarter are pegged at 64 cents.

Advanced Emissions Solutions, Inc. Price, Consensus and EPS Surprise

 

Advanced Emissions Solutions, Inc. Price, Consensus and EPS Surprise | Advanced Emissions Solutions, Inc. Quote

Zacks Rank: The company currently sports a Zacks Rank #1.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Stocks to Consider

Here are some companies in the Zacks Industrial Products sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter, according to our model.

DXP Enterprises, Inc. (DXPE - Free Report) has an Earnings ESP of +2.50% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Axon Enterprise, Inc. currently has an Earnings ESP of +6.99% and a Zacks Rank #3.

Colfax Corporation presently has an Earnings ESP of +2.27% and a Zacks Rank #3.

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