Energy Recovery Inc Down 7.62% To $14.43 After Earnings Beat

Energy Recovery Inc (ERII) reported better than expected earnings this afternoon for Q4 2023.

Analyst expectations for Energy Recovery Inc earnings per share (EPS) were at $0.38, with the company surpassing those estimates with a reported EPS of $0.39, leading to a positive surprise of $0.01 per share (3%). Energy Recovery Inc's earnings rose 50% year-over-year as the firm reported an EPS of $0.26 in its year-ago quarter. The positive annual growth shows the Industrials company is performing well amid recent economic conditions.

Revenues were downbeat at $57.2 million. That is an increase of 35.23% in revenues from the year-ago report and is 10.03% lower than consensus estimates set at $63.6 million.

The stock is down 7.62% to $14.43 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Energy Recovery Inc has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 12, putting Energy Recovery Inc in the bottom 25% of stocks. The firm set a 52-week low on October 30, 2023 at $14.04 and set a 52-week high on July 19, 2023 at $30.76.

Energy Recovery Inc is an engineering-driven technology company. It is engaged in engineering, designing, manufacturing and supplying solutions that make industrial processes more efficient and sustainable. The company operates in two segments, Water and Emerging Technologies. It offers energy recovery devices (ERDs) and pumps as well as related products and services to the global reverse osmosis desalination market. The company derives a majority of the revenue from the Water segment. Geographically, the company operates in the U.S. and other international countries.