OPAL Fuels (NASDAQ:OPAL) Issues Earnings Results, Misses Estimates By $0.05 EPS

OPAL Fuels (NASDAQ:OPAL) issued its quarterly earnings results on Monday. The company reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.05), FiscalAI reports. The business had revenue of $79.49 million during the quarter, compared to analyst estimates of $91.30 million. OPAL Fuels had a negative net margin of 0.06% and a negative return on equity of 1.29%.

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

• Third-quarter Adjusted EBITDA rose 32% to $26.7 million, driven by growth in Fuel Station Services, 45Z tax credits and lower G&A. The company maintained its full-year guidance, but expects to finish near the low end.
• Full-year RNG production is expected to come in modestly below prior guidance, as operational improvements took longer than expected. Management said production gains are appearing in the fourth quarter and expects three new projects with 2 million MMBtu of annual design capacity to come online during 2027.
• Fuel Station Services Adjusted EBITDA increased 18% to $13 million in the quarter, supported by higher volumes and improved margins. Management sees diesel prices boosting fleet interest in natural gas and RNG, and expects to direct a greater share of capital toward downstream growth.
• Management cited downward pressure and volatility in D3 RIN prices, which have been trading near the D4 RIN floor amid expectations of potential D3 supply oversupply. Current RIN pricing is incorporated into full-year guidance.
• Co-CEO John Maurer plans to retire effective March 31, 2027, and will remain involved as a senior advisor to support the leadership transition.

OPAL Fuels Price Performance

Shares of OPAL stock traded up $0.13 during trading hours on Wednesday, reaching $1.43. The company’s stock had a trading volume of 59,001 shares, compared to its average volume of 240,211. The firm’s 50 day simple moving average is $1.70 and its 200-day simple moving average is $2.09. The company has a market capitalization of $250.08 million, a price-to-earnings ratio of -15.90 and a beta of 0.82. OPAL Fuels has a fifty-two week low of $1.27 and a fifty-two week high of $2.87. The company has a quick ratio of 1.68, a current ratio of 1.82 and a debt-to-equity ratio of 10.89.

Insider Activity at OPAL Fuels

In other OPAL Fuels news, CEO Adam Comora purchased 50,000 shares of the stock in a transaction dated Tuesday, September 1st. The stock was bought at an average price of $1.93 per share, with a total value of $96,500.00. Following the acquisition, the chief executive officer owned 489,626 shares of the company’s stock, valued at approximately $944,978.18. This represents a 11.37% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Over the last ninety days, insiders acquired 80,000 shares of company stock worth $157,900. 85.69% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the company. Wall Street Zen cut shares of OPAL Fuels from a “hold” rating to a “sell” rating in a research report on Saturday, October 17th. Weiss Ratings reiterated a “sell (d+)” rating on shares of OPAL Fuels in a research note on Wednesday, November 4th. One equities research analyst has rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, OPAL Fuels currently has a consensus rating of “Sell” and a consensus target price of $2.40.

About OPAL Fuels

OPAL Fuels Inc. is a renewable energy company that develops and operates infrastructure for producing and using renewable natural gas (RNG). The company captures methane from landfills and other waste sources and processes it into pipeline-quality RNG, helping convert waste emissions into a usable energy resource. Its activities include the development, construction, ownership and operation of landfill gas and RNG facilities, as well as the generation of renewable electricity. OPAL Fuels also supplies RNG for use as a transportation fuel and provides fueling infrastructure and related services for fleets, including heavy-duty vehicles.