Aemetis (NASDAQ:AMTX) Announces Quarterly Earnings Results, Beats Expectations By $0.16 EPS

Aemetis (NASDAQ:AMTX) announced its quarterly earnings data on Thursday. The specialty chemicals company reported ($0.13) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.29) by $0.16, FiscalAI reports. The firm had revenue of $62.70 million for the quarter, compared to analyst estimates 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 5.5%

AMTX opened at $1.72 on Friday. The company has a market cap of $121.04 million, a P/E ratio of -1.89 and a beta of 1.48. The company’s 50 day moving average is $1.79 and its 200-day moving average is $2.06. Aemetis has a 1-year low of $1.30 and a 1-year high of $3.80.

Wall Street Analyst Weigh In

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

Hedge Funds Weigh In On Aemetis

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Virtu Financial LLC acquired a new stake in Aemetis in the fourth quarter valued at approximately $31,000. XTX Topco Ltd bought a new position in shares of Aemetis in the 4th quarter valued at $52,000. Quadrature Capital Ltd bought a new position in shares of Aemetis in the 4th quarter valued at $77,000. 683 Capital Management LLC acquired a new stake in shares of Aemetis during the 4th quarter valued at $327,000. Finally, Graham Capital Management L.P. acquired a new stake in shares of Aemetis during the 4th quarter valued at $45,000. Institutional investors own 27.02% of the company’s stock.

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.