Movers and SHAKERS
Energy Services of America (ESOA)
PPP Tax Payment Masks Strong Quarter and Profitable Year
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 4Q2020 (September) operating results above expectations. 4Q2020 revenues increased $6.2 million (16%) to $44.5 million from $38.3 million in 4Q2019, and EBITDA increased by $4.0 million (114%) to $7.0 million from $3.0 million in 4Q2019. While we don’t have the segment details yet, quarterly revenue was the highest in the past six quarters. A net loss of $0.039/share was reported in FY2020 due to a tax payment related to the PPP loan, adjusted net income of $0.126/diluted share was 31% higher than FY2019.
Introducing FY2021 EBITDA estimate of $10.8 million to reflect the strong end to FY2020 and sustained higher profitability due to the shift in the business model. Forecasted revenue of $122.5 million is a slight 3% improvement from $119.2 million and EBITDA of $10.8 million is about $2.7 million higher than $8.1 million in FY2020. Profitability should continue to improve and we forecast higher ...
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.