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

Key Points

• Aemetis beat earnings expectations, reporting a quarterly loss of $0.13 per share versus the estimated $0.29 loss. Revenue rose 20% year over year to $62.7 million, though it fell short of the $67.7 million consensus estimate.
• Operational improvements lifted adjusted EBITDA to $9.7 million from negative $5.8 million, supported by higher ethanol and RNG volumes, improved ethanol pricing, lower corn costs, and $8.6 million in Section 45Z credits.
• Liquidity remains a major risk: Aemetis had only $1 million in cash at quarter-end and substantial current debt. Management expects future 45Z proceeds and other inflows to support debt repayment and refinancing, but federal credit changes remain uncertain.

Aemetis (NASDAQ:AMTX - Get Free Report) released its quarterly earnings results on Thursday. The specialty chemicals company reported ($0.13) earnings per share for the quarter, beating analysts' consensus estimates of ($0.29) by $0.16, FiscalAI reports. The business 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 5.2%

Shares of NASDAQ:AMTX traded up $0.08 during trading on Thursday, hitting $1.63. 1,262,677 shares of the company's stock were exchanged, compared to its average volume of 1,089,291. The firm has a market cap of $114.70 million, a P/E ratio of -1.37 and a beta of 1.48. The firm has a 50-day moving average price of $1.81 and a two-hundred day moving average price of $2.06. Aemetis has a 1-year low of $1.30 and a 1-year high of $3.80.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. Wall Street Zen lowered Aemetis from a "hold" rating to a "sell" rating in a research note on Saturday, June 6th. Ascendiant Capital Markets raised 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, Weiss Ratings reiterated a "sell (e+)" rating on shares of Aemetis in a research report on Friday, July 17th. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $11.88.

Institutional Trading of Aemetis

A number of institutional investors have recently bought and sold shares of AMTX. Creative Planning acquired a new position in shares of Aemetis in the 2nd quarter valued at $30,000. Virtu Financial LLC acquired a new position in Aemetis in the fourth quarter valued at about $31,000. HRT Financial LP bought a new position in Aemetis during the fourth quarter worth about $36,000. Centiva Capital LP acquired a new position in shares of Aemetis during the 3rd quarter worth about $39,000. Finally, Engineers Gate Manager LP acquired a new position in shares of Aemetis during the 2nd quarter worth about $42,000. Institutional investors and hedge funds own 27.02% of the company's stock.

About Aemetis

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.

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