On March 30, 2022, the construction engineering company, Orbital Energy Group Inc. (OEG) posted quarterly earnings for Q4 2021. Although the earnings report fell short of estimates on both revenue and EPS, that did not swerve the investors. Thus, despite missing expectations, the stock continued on its bullish roll in the after hours.
Shares of the electric power and solar infrastructure services provider were up by a further 15.59% in the after-hours on Wednesday. This follows an uptick of 1.64% in the prior regular trading valuing the stock at a price of $1.86 per share. Consequent to the after-hours gain, OEG was trading at $2.15 a piece at the last check.
OEG’s Q4 2021 Financial Analysis
The company’s revenue for the quarter stood at $41.05 million, shy of the expected $45.02 million. The revenue did report a nice improvement of 65.3% YOY due to its latest acquisitions of GTS and Front Line Power in 2021.
Moreover, OEG posted negative EPS of $0.34 for the quarter with losses from operations expanding to $8.72 million. The comparative figures for Q4 2020 were a negative EPS of $0.25 and a loss of $6.39 million. Additionally, analysts were looking for a negative EPS of $0.10 for the quarter.
On the other hand, the quarter’s adjusted EBITDA, gross profit, and backlog reported improvement. Thus, the EBITDA was $(1.15) million, gross profit $7.4 million, and backlog $523.7 million.
According to the company, the culprits behind the impact on financial performance in the quarter were continued investments and construction delays.
Missed Earnings but Beat Movement
Although the company’s latest earnings release failed to beat or even meet the expected EPS and revenue, its EBITDA did improve pretty well. It seems investors are overlooking the lower-than-expected results just because the company is poised for better EBITDA in the future as well. OEG is looking forward to an EBITDA of $38-$43 million for fiscal 2022.
Additionally, the company’s gross profit improvement also seems to have played a role. While we still might miss the keen eye of investors as to why the stock moved up in spite of the missed essentials, investors seem to be having a soft heart towards the company.
OEG’s Recent Developments
As per the recent news, OEG’s subsidiary Orbital Solar Services has commenced construction on a solar farm in Alabama. The farm is being constructed along with its JV partner Jingoli Power LLC for Lightsource bp.
