Shares of Ameresco dropped to a three-year low after the company cut its full-year guidance and recorded lower earnings and revenue than analysts had been expecting.
The stock fell 31% to a low of $18.40 after the market opened Tuesday. Shares haven’t traded this low since May 2020.
After the bell on Monday, the renewable energy company said it expects adjusted earnings, which strip out one-time items, of $1.15 to $1.25 a share for the year, down from previous guidance for $1.80 to $1.90 a share.
Annual revenue is now projected to be $1.315 billion to $1.37 billion instead of the prior outlook range of $1.45 billion to $1.55 billion.
The downward revision comes in light of recent industry headwinds, including project conversion delays, push-outs in asset permitting, and labor and material shortages, all of which are expected to continue into 2024, Chief Executive George Sakellaris said.
For the third quarter, Ameresco posted a profit of $21.3 million, or 40 cents a share, compared with $28.4 million, or 51 cents a share, in the same quarter a year ago.
Analysts surveyed by FactSet had been looking for earnings of 46 cents a share.
Revenue came in at $335.1 million, down from $441.3 million in the year-ago quarter and below analyst forecasts for $386.2 million, according to FactSet.