Aemetis (NASDAQ:AMTX) Posts Quarterly Earnings Results, Beats Estimates By $0.16 EPS

Aemetis (NASDAQ:AMTX) released its earnings results on Thursday. The specialty chemicals company reported ($0.13) EPS for the quarter, topping analysts’ consensus estimates of ($0.29) by $0.16, FiscalAI reports. The business had revenue of $62.70 million during the quarter, compared to the consensus estimate of $67.69 million.

Here are the key takeaways from Aemetis’ conference call:

• Q2 revenue increased 20% year over year to $62.7 million, while adjusted EBITDA improved to $9.7 million from negative $5.8 million and net loss narrowed to $9.4 million. Results benefited from higher ethanol and RNG volumes, improved ethanol pricing, lower corn costs, and $8.6 million of Section 45Z credits.
• Aemetis expects its mechanical vapor recompression project, targeted for completion by year-end 2026, to generate approximately $32 million in annual cash flow through lower natural-gas costs and higher 45Z and LCFS credit values. Upgraded corn-oil separation units are also expected to roughly double corn-oil production from first-quarter levels.
• The company has seven approved California LCFS pathways for dairy RNG at an average carbon-intensity score of negative 380, with six additional pathways pending. Management said these approvals, along with potential federal 45Z emissions-rate revisions, could materially increase revenue from existing RNG production.
• Aemetis began shipping under a new India biodiesel tender after receiving allocations of more than 18 million liters from three government-owned oil companies, representing approximately $17 million of expected revenue. Higher Indian diesel prices are also creating opportunities to expand sales to private commercial customers.
• Liquidity remains constrained, with only $1 million of cash at quarter-end and substantial current debt. Management plans to use expected 45Z proceeds and other cash inflows to pay down debt and refinance remaining balances, but the timing and value of federal credit revisions remain uncertain.

Aemetis Trading Up 5.2%

NASDAQ:AMTX opened at $1.63 on Friday. The firm has a market capitalization of $114.70 million, a PE ratio of -1.37 and a beta of 1.48. Aemetis has a 1 year low of $1.30 and a 1 year high of $3.80. The firm’s fifty day simple moving average is $1.81 and its 200 day simple moving average is $2.06.

Institutional Investors Weigh In On Aemetis

Several hedge funds and other institutional investors have recently made changes to their positions in AMTX. Virtu Financial LLC bought a new position in shares of Aemetis in the fourth quarter worth about $31,000. XTX Topco Ltd acquired a new stake in shares of Aemetis in the fourth quarter worth $52,000. Quadrature Capital Ltd bought a new position in Aemetis during the fourth quarter worth $77,000. 683 Capital Management LLC acquired a new position in Aemetis during the 4th quarter valued at $327,000. Finally, Graham Capital Management L.P. acquired a new position in Aemetis during the 4th quarter valued at $45,000. 27.02% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research analysts have issued reports on the stock. Ascendiant Capital Markets lifted their price target on shares of Aemetis from $21.00 to $22.00 and gave the stock a “buy” rating in a research report on Friday, May 22nd. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Aemetis in a research note on Friday, July 17th. Finally, Wall Street Zen cut Aemetis from a “hold” rating to a “sell” rating in a research report on Saturday, June 6th. One investment analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $11.88.

Aemetis Company Profile

Aemetis, Inc, headquartered in Cupertino, California, is a renewable fuels and renewable natural gas producer dedicated to decarbonizing the transportation sector. The company operates two primary business segments: Aemetis Advanced Fuels, which manufactures ethanol, biodiesel and sustainable aviation fuel using patented carbon capture and separation technology; and Aemetis RNG, which develops dairy-based renewable natural gas projects in California for pipeline injection and transportation use.

Since its incorporation in 2006, Aemetis has expanded its production footprint through organic growth and strategic acquisitions.