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AMRC NYSE· Ameresco Inc
Earnings report Q3 2023

AMERESCO, INC. Reports Decrease in Revenue for Latest Quarter

Segments of revenue

AMERESCO, INC. reported total revenues of $335.15 million for the latest quarter. The revenue was disaggregated into different segments as follows:

  • U.S. Regions: $143.24 million
  • U.S. Federal: $87.34 million
  • Canada: $17.53 million
  • Alternative Fuels: $27.32 million
  • All Other: $59.72 million

Strengths

AMERESCO, INC. demonstrated strength in its All Other segment, which experienced a significant increase in revenue of 104.7% compared to the same period last year. This growth can be attributed to various factors, including increased demand for energy efficiency and renewable energy projects. The company's management highlighted that their revenues and operating income are typically higher in the third and fourth quarters, and lower in the first quarter, due to seasonal trends and construction cycles. However, they acknowledged that predicting these fluctuations may become more challenging due to potential effects of climate change and government shutdowns.

Challenges

AMERESCO, INC. faced challenges in its U.S. Regions segment, which experienced a significant decrease in revenue of 47.2% compared to the same period last year. This decline was primarily due to lower project revenues resulting from the timing of revenue recognition based on the completion of projects. The company's U.S. Federal segment also saw a decrease in revenue of 11.9%, which could be attributed to various factors affecting government contracts.

Noteworthy

It is worth mentioning that AMERESCO, INC. reported an overall decrease in revenue of 24.1% for the latest quarter compared to the same period last year. This decline in revenue can be attributed to the challenges faced in the U.S. Regions and U.S. Federal segments. Additionally, the company's total revenues for the nine-month period also decreased by 37.5% compared to the same period last year.

Summary

AMERESCO, INC. experienced a decrease in revenue for the latest quarter, primarily driven by lower project revenues in the U.S. Regions segment and various factors affecting government contracts in the U.S. Federal segment. However, the company demonstrated strength in its All Other segment, which experienced significant revenue growth. The management acknowledged the potential challenges in predicting revenue fluctuations due to seasonal trends, construction cycles, climate change, and government shutdowns. Overall, AMERESCO, INC. will need to address the weaknesses in its revenue performance and continue to capitalize on the strengths in order to improve its financial results.

Source documents

Form 10-Q  filed on Nov 07, 2023
42 pages scanned

Reference data

Company financials Q3 revenue 335M
Analyst estimates Q3 EPS missed by -12.98%
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