Movers and SHAKERS
Energy Services of America (ESOA)
March Quarter Results Out and Virtual NDR Comments
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.
Compared to the March 2020 quarter, the March 2021 quarter improved, in part due to the December 2020 acquisition of West Virginia Pipeline (WVP). As typical during the winter, EBITDA was negative at $0.8 million, but it was an improvement over the 2Q2020 EBITDA loss of $1.2 million due to higher revenue and gross profit, which more than offset higher G&A expense. Compared to our estimate, revenue was lower by $0.9 million and costs were slightly lower by $0.5 million so gross profit was $0.4 million lower than expected and EBITDA was $0.7 million lower than expected.
Moving FY2021 EBITDA to $8.0 million from $9.1 million to reflect quarterly results. Our estimate is based on total revenue of $133.6 million and gross profit of $17.3 million. We estimate that gross margin will approximate 12.9% with EBITDA margin of 6.0%. Current backlog of $61.2 million supports our outlook ...
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.