NASDAQ$ERII
Energy Recovery Inc · Q4 2019 earnings
Q4 2019 earnings · · Investor relations
Briefing
Reported a net loss for Q4 2019 due to increased operating expenses and a change in product mix, despite a revenue increase.
Energy Recovery reported a net loss of $0.6 million for the fourth quarter of 2019, compared to a net income of $2.4 million in the same period of 2018. Total revenue increased by 10% to $19.5 million, driven by growth in the Water segment, while the Oil & Gas segment experienced a slight decrease. The company's product gross margin decreased due to a change in product mix, and operating expenses increased due to continued investment in research and development and growth in headcount.
- Total revenue increased by 10% to $19.5 million compared to Q4 2018.
- Water segment product revenue increased by 14% due to higher MPD shipments.
- Oil & Gas segment revenue decreased by 3% due to no product revenue recognized.
- GAAP net loss was $0.6 million, or ($0.01) per diluted share, compared to a net income of $2.4 million, or $0.04 per diluted share in Q4 2018.
Headline financials
Revenue & EPS history
Energy Recovery · Revenue · Quarterly
$19.5M
Revenue by segment
Energy Recovery · $33.6M total across 3 segments · Q4 2021
- Megaproject$25.1M+28.1%74.7%
- OEM$5.7M+39.0%17.0%
- Aftermarket$2.8M+3.7%8.3%
Forward guidance
The company anticipates continued growth in the water business and aims to commercialize the VorTeq system, while also focusing on long-term growth strategies.
Tailwinds
- Optimism for the long-term health of the Water business
- Belief that SWRO is more cost effective than thermal technologies
- Belief that thermal plant owners and operators are encouraged to convert to SWRO technologies
- Belief that potential thermal to SWRO conversions represent a half-billion dollar addressable market
- Intention to continue testing the VorTeq system in preparation for commercialization, including live well testing
Headwinds
- Company’s ability to achieve the milestones under the VorTeq license agreement
- Risks and uncertainties of the Company’s business
- Risks discussed under “Risk Factors” in the Company’s Form 10-K filed with the SEC
- Any other factors that may have been discussed herein regarding the risks and uncertainties of the Company’s business
- Company’s ability to successfully commercialize the VorTeq system
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 Q4 2019
-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
| Quarter | Report date | Reaction (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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