Energy Recovery (ERII) Q3 Earnings and Revenues Surpass Estimates

Core Insights - Energy Recovery (ERII) reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, and showing a year-over-year increase from $0.20 per share [1] - The company achieved revenues of $38.58 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.24% and up from $37.04 million a year ago [2] - Energy Recovery has outperformed consensus EPS estimates three times over the last four quarters and has topped revenue estimates twice in the same period [2] Earnings Performance - The quarterly earnings surprise was 50%, and the company previously exceeded expectations by 550% when it reported earnings of $0.09 per share against an expected loss of $0.02 [1] - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $70.25 million, and for the current fiscal year, it is $0.63 on revenues of $147.28 million [7] Market Position - Energy Recovery shares have declined approximately 6.7% since the beginning of the year, contrasting with the S&P 500's gain of 22.3% [3] - The Zacks Rank for Energy Recovery is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Pollution Control industry, to which Energy Recovery belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Energy Recovery's stock performance [5]