Movers and SHAKERS
Energy Services of America (ESOA)
FY2020 Earnings Revised Higher Due to Stimulus Legislation
Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is primarily engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical and automotive industries, and does incidental work such as water and sewer projects. Energy Service's other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Fiscal 2020 (September) results were revised upward due to stimulus legislation. The reported net FY2020 loss of $0.039/share was revised upward to net income of $0.123/share in the FY2020 10-K filed yesterday. More clarity on the taxation of PPP loan forgiveness included in the stimulus legislation resulted in the reversal of $2.7 million of the reported tax provision. There was no change to adjusted FY2020 EBITDA of $8.0 million.
Closing of WV Pipeline acquisition adds confidence to FY2021 EBITDA estimate of $10.8 million. EBITDA growth in the 30% range reflects the strong finish to FY2020, sustained higher profitability due to the shift in the business model and the closing of the WV Pipeline acquisition last week. Forecasted revenue of $122.5 million is a slight 3% improvement from FY2020 revenue of $119.2 million and ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.