Movers and SHAKERS
Energy Services of America (ESOA)
In Line Quarter. Signs of Recovery Ahead.
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 3Q2020 (June) Quarter in line with expectations. Higher revenue was offset higher operating costs so gross profit of $2.8 million and adjusted EBITDA of $1.4 million were in line.
Fine-tuning FY2020 EBITDA. We are moving our FY2020 EBITDA estimate to $3.4 million from $3.5 million to reflect fiscal 3Q2020 operating results and more moderate gross margin assumptions due to project cancellations/delays.
Uncertain outlook and lower backlog, but signs of recovery. Backlog dropped to was $69.8 million in 3Q2020 from $92.1 million in 2Q2020 due to the shifts in project timing. Current bidding activity continues and adding projects seems likely, but the COVID-19 uncertainty and low energy prices remain concerning and project might ...
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.