Coal news and updates

Headquartered in Colorado, Advanced Emissions Solutions (ADES) develops, offers and implements proprietary environmental technologies and provides equipment and specialty chemicals that enable coal-fueled power plants to meet emissions regulations. It operates in three principal business segments: refined coal, emissions control and CO2 capture.

 

ADES reported its second quarter 2013 results on August 7, 2013. The quarter resulted in a net loss of $3.2 million or $0.32 per share compared to a net loss of $1.3 million or $0.13 per share for 2012. The results were substantially worse than the Zacks Consensus Estimate for earnings of $0.14 per share.

 

Management said that while they were pleased with the continued success in its emission control business, they were disappointed by the delays in the refined coal business that saw the closing of the lease contracts for two of its facilities slip into the third quarter of 2013.

Due to disappointing results and uninspiring guidance, quarterly and annual estimates have been revised sharply downwards in the past few weeks. Zacks consensus estimates for the current quarter and year are now in the negative territory—($0.11) and ($0.26) per share respectively, down substantially from $0.58 and $1.65 per share, 60 days ago.

 

The company has missed estimates in each of the past four quarters, with an average negative surprise of 548.72%.

While the emission control business continues to do well, delays in the refined coal business continue to impact the results in the short term. ADES is currently Zacks Rank # 5 (Strong Sell) stock and it has a longer-term recommendation of “Underperform.” Further, Zacks Industry Rank of 218 out of 265 also indicated weakness in the short- to mid- term. As such investors should think about avoiding this stock for the time being.

 

 

Source: Forbes.com