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

Aemetis (NASDAQ:AMTX) posted its quarterly earnings data on Thursday. The specialty chemicals company reported ($0.13) earnings per share (EPS) 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 analysts’ expectations 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 Stock Up 5.2%

Shares of Aemetis stock traded up $0.08 on Thursday, reaching $1.63. The stock had a trading volume of 1,262,677 shares, compared to its average volume of 1,089,291. The company has a 50 day moving average price of $1.81 and a 200 day moving average price of $2.06. Aemetis has a 1 year low of $1.30 and a 1 year high of $3.80. The stock has a market capitalization of $114.70 million, a P/E ratio of -1.37 and a beta of 1.48.

Institutional Investors Weigh In On Aemetis

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AMTX. Marshall Wace LLP raised its holdings in shares of Aemetis by 289.3% in the fourth quarter. Marshall Wace LLP now owns 559,754 shares of the specialty chemicals company’s stock worth $778,000 after buying an additional 415,978 shares during the last quarter. Vanguard Group Inc. lifted its position in Aemetis by 15.3% during the 3rd quarter. Vanguard Group Inc. now owns 2,479,163 shares of the specialty chemicals company’s stock worth $5,578,000 after acquiring an additional 329,760 shares during the period. Jane Street Group LLC acquired a new position in shares of Aemetis in the second quarter valued at about $634,000. CIBC Bancorp USA Inc. purchased a new position in shares of Aemetis in the third quarter worth about $563,000. Finally, 683 Capital Management LLC purchased a new stake in Aemetis in the fourth quarter valued at approximately $327,000. 27.02% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

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

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.