NASDAQ$ERII

Energy Recovery Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported record-high quarterly product revenue in its core Water segment with 52% growth compared to the first quarter of 2020.

Energy Recovery reported a strong first quarter with record-high product revenue in its core Water segment, driven by megaproject and aftermarket channels. The company is also making progress in emerging technology projects and maintaining cost discipline, resulting in improved profitability.

  • Product revenue increased by 52% compared to Q1 2020.
  • Megaproject and aftermarket channels contributed to strong sales growth in the Water segment.
  • Operating expenses were reduced through disciplined spending in G&A and R&D.
  • Net income increased significantly to $6.9 million, or $0.12 per diluted share.

Headline financials

Total Revenue

$28.9M

Previous: $21.5M+34.3%
EPS (adj)

$0.12

Previous: $0.01+1100.0%
Capital Expenditures

-$627K

Previous: -$1.38M+54.6%
Free Cash Flow

$6.24M

Previous: -$759K+922.0%
Net Income

$6.87M

Previous: $621K+1005.6%
Operating Income

$6.14M

Previous: $128K+4700.0%
Gross Profit

$92K

Previous: $420K-78.1%
Cash & Equivalents

$105M

Previous: $32.8M+220.9%
Total Assets

$215M

Previous: $191M+12.9%
Stock-Based Comp

$1.91M

Previous: $1.5M+27.3%

Revenue & EPS history

Energy Recovery · Revenue · Quarterly

$28.9M

Q1 2021+34.3%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Energy Recovery · $33.6M total across 3 segments · Q4 2021

  • Megaproject
    $25.1M+28.1%
  • OEM
    $5.7M+39.0%
  • Aftermarket
    $2.8M+3.7%

Forward guidance

Energy Recovery is embarking on a path of sustainable, disciplined and diversified growth. The company believes its carbon dioxide commercial refrigeration solution excels in warmer climates and is making significant progress in emerging technology projects, which will lead to a more diversified revenue stream in the future.

Tailwinds

  • The company is embarking on a path of sustainable, disciplined and diversified growth.
  • The company is able to develop pressure exchanged-based solutions for new industries
  • The company's carbon dioxide commercial refrigeration solution excels in warmer climates as compared to the market-leading technology
  • The company's future is bright
  • The company is making significant progress in our emerging technology projects.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-1.2%

Avg return

Earnings day

-1.0%

Avg return

5 days after

+0.1%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+34.9%

Q4 2013

Best reaction

-35.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.7%-23.1%-29.3%
Q4 2025-35.4%-36.6%-38.8%
Q3 2025-16.0%-18.6%-14.7%
Q1 2025-18.5%-18.5%-16.0%
Q4 2024+2.5%+3.7%+8.7%
Q3 2024+1.6%+5.3%-11.5%
Q2 2024+21.6%+10.8%+12.2%
Q1 2024-12.5%-9.9%-9.4%
Q4 2023-3.6%-2.4%-2.4%
Q3 2023+16.5%+19.1%+24.2%
Q2 2023-15.0%-9.5%-17.0%
Q1 2023+4.7%+6.0%+13.8%
Q4 2022+3.4%+2.8%+2.7%
Q3 2022-30.1%-28.5%-11.5%
Q2 2022+2.8%+2.3%+3.1%
Q1 2022-2.7%-6.1%+14.0%
Q4 2021+4.5%+1.4%+7.2%
Q3 2021+5.5%+7.8%-0.6%
Q2 2021-2.1%-3.0%+17.6%
Q1 2021-0.8%-15.4%-3.5%
Q4 2020+6.8%+0.2%+3.2%
Q3 2020+9.9%+11.0%+23.4%
Q2 2020-4.3%-3.2%+6.7%
Q1 2020-6.9%-6.1%-8.0%
Q4 2019+6.3%-8.9%-29.8%
Q3 2019+2.1%+0.2%-7.0%
Q2 2019+1.6%-9.7%-11.9%
Q1 2019+10.7%+6.0%-2.1%
Q4 2018+11.6%+3.8%+16.3%
Q3 2018+22.4%+21.9%+8.9%
Q2 2018+13.8%+20.8%+20.2%
Q1 2018+2.6%+9.7%+7.0%
Q4 2017+13.3%+26.3%+19.3%
Q3 2017+12.3%+27.9%+42.4%
Q2 2017-10.7%-12.3%-14.0%
Q1 2017-10.3%-9.2%-11.9%
Q4 2016-7.3%-10.4%-7.0%
Q3 2016-24.8%-16.8%-14.5%
Q2 2016+12.5%+22.1%+15.7%
Q1 2016-6.3%
Q4 2015-5.7%
Q3 2015+15.1%
Q2 2015+1.9%
Q1 2015+0.0%
Q4 2014-14.7%
Q3 2014-7.5%
Q2 2014+0.5%
Q1 2014-8.7%
Q4 2013+34.9%
Q3 2013-19.1%
Q2 2013+4.0%
Q1 2013-3.4%
Q4 2012+2.0%
Q3 2012-1.7%
Q2 2012+0.0%
Q1 2011+1.4%
Q1 2012-3.0%
Q4 2009-7.6%
Q4 2011-7.6%
Q3 2011-11.0%
Q2 2011-10.1%
Q4 2010-10.1%
Q3 2010+0.8%
Q2 2010+0.7%
Q1 2010-14.5%

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