OPAL Fuels (NASDAQ:OPAL) Releases Earnings Results, Misses Estimates By $0.13 EPS

OPAL Fuels (NASDAQ:OPAL) announced its quarterly earnings results on Monday. The company reported ($0.05) EPS for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.13), FiscalAI reports. OPAL Fuels had a net margin of 1.33% and a negative return on equity of 479.62%. The firm had revenue of $83.40 million during the quarter, compared to the consensus estimate of $90.72 million.

Here are the key takeaways from OPAL Fuels’ conference call:

• Adjusted EBITDA rose 40% year over year to $23.1 million, supported by 45Z production tax credits, Fuel Station Services growth, and lower G&A. Management maintained its full-year guidance.
• RNG production increased 8% to 1.3 million MMBtus but was below expectations, and management said full-year production may trend toward the lower end of its original forecast. Plant optimization efforts targeting gas collection, quality, availability, and efficiency are expected to support second-half growth with limited capital spending.
• The company expects more than 2 million MMBtus of annual design capacity from Cottonwood, Burlington, and CMS to come online over the next 12 months, while Stones Throw and Grady Road add another 1 million MMBtus of capacity targeted for 2028.
• Opal reported $162.2 million of liquidity and said existing cash flow, debt capacity, and preferred capital commitments should fund projects already under construction. Management continues to prioritize investment in RNG facilities and fueling infrastructure to expand recurring earnings and cash flow.
• Renewable Power segment EBITDA fell to $0.3 million from $2.2 million because of lower production and pricing, and the company expects further declines as assets are converted to RNG plants. G&A is also expected to increase from the second-quarter level as professional services and organizational investments normalize.

OPAL Fuels Stock Performance

Shares of OPAL stock opened at $2.60 on Tuesday. The business’s 50 day simple moving average is $2.17 and its 200 day simple moving average is $2.23. OPAL Fuels has a one year low of $1.65 and a one year high of $2.87. The stock has a market capitalization of $450.84 million, a PE ratio of 37.15 and a beta of 0.76. The company has a debt-to-equity ratio of 23.21, a current ratio of 2.20 and a quick ratio of 2.07.

Insider Transactions at OPAL Fuels

In other news, Director Scott Mcdougald Sutton purchased 50,000 shares of the stock in a transaction on Thursday, June 11th. The stock was purchased at an average price of $1.95 per share, for a total transaction of $97,500.00. Following the acquisition, the director owned 50,000 shares in the company, valued at $97,500. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In the last three months, insiders have purchased 72,292 shares of company stock worth $142,845. 85.69% of the stock is currently owned by company insiders.

Institutional Trading of OPAL Fuels

Institutional investors have recently bought and sold shares of the company. Zions Bancorporation National Association UT bought a new position in shares of OPAL Fuels in the 4th quarter worth about $27,000. Mariner LLC acquired a new position in OPAL Fuels in the fourth quarter valued at approximately $27,000. Engineers Gate Manager LP bought a new position in shares of OPAL Fuels during the 2nd quarter worth approximately $27,000. Intech Investment Management LLC bought a new position in shares of OPAL Fuels during the 2nd quarter worth approximately $28,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in shares of OPAL Fuels during the 2nd quarter worth approximately $28,000. Institutional investors own 12.16% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on OPAL shares. Wall Street Zen raised OPAL Fuels from a “strong sell” rating to a “sell” rating in a report on Saturday, August 1st. Weiss Ratings downgraded OPAL Fuels from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, May 13th. Finally, Zacks Research upgraded shares of OPAL Fuels from a “strong sell” rating to a “hold” rating in a report on Tuesday, May 5th. One equities research analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, OPAL Fuels currently has an average rating of “Sell” and an average price target of $2.40.

OPAL Fuels Company Profile

OPAL Fuels (NASDAQ: OPAL) is a publicly traded company headquartered in San Diego, California, specializing in the production, distribution and dispensing of renewable natural gas (RNG) for heavy-duty transportation. The company operates a network of RNG fueling stations across California, offering fleets of trucks, transit buses and logistics providers a low-carbon alternative to conventional diesel without requiring significant changes to existing vehicle technology or fueling infrastructure.

OPAL Fuels sources organic byproducts from dairy farms, landfills and food-processing facilities, converting methane-rich biogas into pipeline-quality RNG through a series of anaerobic digestion and gas-upgrading processes.