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Cantor Fitzgerald Cuts Price Target on Energy Recovery (ERII), Poor Outlook Leads to No More Guidance

August 8, 2011 12:02 PM EDT
ERII Hot Sheet
Rating Summary:
    1 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Cantor Fitzgerald is maintaining its Hold rating on shares of Energy Recovery (NASDAQ: ERII), but is cutting its price target from $2.50 to $2.00 following its Q2 conference call.

The company released its Q2 results inline with expectations with an EPS loss of $0.06 and revenues reaching $10.4 million. Revenues were down 50 percent year-over-year and down 36 percent sequentially.

During the conference, management highlighted a new share buyback plan, implementation of a strategic acquisition plan, and that they do not see any improvements in its financial outlook for several quarter to come. As a result, the company will no longer offer guidance.

The firm has reduced its FY11 and FY12 EPS estimates from ($0.15) and ($0.01) to ($0.23) and ($0.19). Cantor Fitzgerald also lowered its revenue estimates for the two years from $36.2 million and $50.6 million to $31.8 million and $37.3 million.

For more ratings news on Energy Recovery click here and for the rating history of Energy Recovery click here.

Shares of Energy Recovery closed at $2.78 yesterday, with a 52 week range of $2.35-$4.36.


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