NASDAQ$ERII

Energy Recovery Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Achieved seven percent growth in product revenue, driven by desalination business and progress in diversification efforts.

Energy Recovery reported a solid financial quarter with a 7% increase in product revenue compared to Q2 2020. The desalination business thrived, and the company made progress in diversifying its pressure exchanger technology. Net income was $1.1 million, or $0.02 per diluted share.

  • Product revenue increased by 7% compared to the second quarter of 2020.
  • The desalination business continues to thrive, driven by returning demand.
  • Progress was made in diversifying pressure exchanger technology with new projects in chemical manufacturing, landfill leachate, and lithium-ion battery manufacturing.
  • The company is seeking its first commercial deployment of the PX G1300 energy recovery device for CO2 refrigeration.

Headline financials

Total Revenue

$20.6M

Previous: $43.6M-52.7%
EPS (adj)

$0.02

Previous: $0.33-93.9%
Capital Expenditures

-$2.45M

Previous: -$4.41M+44.5%
Free Cash Flow

-$1.38M

Previous: $12.5M-111.0%
Net Income

$1.07M

Previous: $16.9M-93.7%
Operating Income

$287K

Previous: $21.3M-98.7%
Gross Profit

$51K

Previous: $255K-80.0%
Cash & Equivalents

$103M

Previous: $63M+64.0%
Total Assets

$209M

Previous: $186M+12.6%
Stock-Based Comp

$1.43M

Previous: $1.09M+30.8%

Revenue & EPS history

Energy Recovery · Revenue · Quarterly

$20.6M

Q2 2021-52.7%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Energy Recovery · $20.6M total across 3 segments · Q2 2021

  • Megaproject
    $13.3M
  • OEM
    $4.3M
  • Aftermarket
    $3M

Forward guidance

The company is embarking on a path of sustainable, disciplined and diversified growth. The company is working towards a more diversified revenue stream for the future and making significant progress in emerging technology projects.

Tailwinds

  • The company believes it is embarking on a path of sustainable, disciplined and diversified growth
  • The company believes it can develop pressure exchanged-based solutions for new industries
  • The company believes its carbon dioxide commercial refrigeration solution excels in warmer climates as compared to the market-leading technology
  • The company believes that its future is bright
  • The company believes it can work towards a more diversified revenue stream for the future

Headwinds

  • Potential risks and uncertainties include any other factors that may have been discussed herein regarding the risks and uncertainties of the Company’s business
  • The risks discussed under “Risk Factors” in the Company’s Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) for the year ended December 31, 2020
  • Other reports filed by the Company with the SEC from time to time.
  • The Company’s actual results may differ materially from the predictions in these forward-looking statements.
  • All forward-looking statements are made as of today, and the Company assumes no obligation to update such statements.

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 Q2 2021

Historical avgQ2 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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