Fuel Tech (FTEK) Misses Q3 EPS by 2c, Revenues Miss

Fuel Tech (NASDAQ: FTEK) reported Q3 EPS of ($0.05), $0.02 worse than the analyst estimate of ($0.03). Revenue for the quarter came in at $6.4 million versus the consensus estimate of $10.22 million.

“Our results for Q3 2019 reflect the ongoing delays in closing new Air Pollution Control (“APC”) business awards,” said Vincent J. Arnone, Chairman, President and CEO of Fuel Tech. “The strong financial condition and the operating leverage that we have created via our domestic and international restructuring efforts over these past several years has served to mitigate the impact caused by these delays. We are beginning to see modest progress with respect to business development, as evidenced by our recent contract announcement. Near-term challenges notwithstanding, we remain confident in the long-term APC opportunity and continue to track an active global sales pipeline of approximately $80 million to $100 million in potential project work. We expect to close on new contract awards before the end of 2019.”

Mr. Arnone continued, “The suspension of our underperforming China operation (“Beijing Fuel Tech”) is nearing completion and, as expected, the associated losses narrowed significantly in Q3 2019. The wind down of these operations is expected to be completed by the end of 2019 and will result in the removal of approximately $2 million in annual operating losses, the full benefit of which we will realize in 2020. Our liquidity is strong, and we ended the third quarter with $15.3 million in total cash and no debt.”

For earnings history and earnings-related data on Fuel Tech (FTEK) click here.

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