OPAL Fuels (NASDAQ:OPAL) Releases Earnings Results

OPAL Fuels (NASDAQ:OPAL) issued its earnings results on Monday. The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.13), FiscalAI reports. OPAL Fuels had a return on equity of 35.46% and a net margin of 0.65%.The company had revenue of $83.40 million during the quarter, compared to analyst estimates 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 Trading Down 5.8%

NASDAQ OPAL opened at $2.45 on Wednesday. The company has a quick ratio of 2.07, a current ratio of 2.20 and a debt-to-equity ratio of 23.21. OPAL Fuels has a 52 week low of $1.65 and a 52 week high of $2.87. The stock has a market capitalization of $424.83 million, a PE ratio of -244.76 and a beta of 0.76. The firm has a 50 day moving average of $2.17 and a two-hundred day moving average of $2.23.

Insider Activity at OPAL Fuels

In other news, Director Scott Mcdougald Sutton acquired 50,000 shares of OPAL Fuels stock in a transaction dated Thursday, June 11th. The shares were acquired at an average cost of $1.95 per share, for a total transaction of $97,500.00. Following the acquisition, the director owned 50,000 shares of the company’s stock, valued at $97,500. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Over the last quarter, insiders have purchased 72,292 shares of company stock valued at $142,845. Corporate insiders own 85.69% of the company’s stock.

Hedge Funds Weigh In On OPAL Fuels

Several large investors have recently bought and sold shares of the business. Virtu Financial LLC grew its position in shares of OPAL Fuels by 39.1% in the 4th quarter. Virtu Financial LLC now owns 31,008 shares of the company’s stock valued at $73,000 after buying an additional 8,719 shares during the last quarter. Wells Fargo & Company MN raised its stake in OPAL Fuels by 73.2% during the 4th quarter. Wells Fargo & Company MN now owns 23,197 shares of the company’s stock valued at $55,000 after acquiring an additional 9,801 shares during the last quarter. Engineers Gate Manager LP acquired a new stake in shares of OPAL Fuels during the second quarter worth $27,000. Mariner LLC purchased a new position in OPAL Fuels in the 4th quarter valued at $27,000. Finally, Zions Bancorporation National Association UT purchased a new position in OPAL Fuels in the 4th quarter valued at $27,000. Hedge funds and other institutional investors own 12.16% of the company’s stock.

Analyst Upgrades and Downgrades

OPAL has been the subject of a number of analyst reports. Weiss Ratings reissued a “sell (d+)” rating on shares of OPAL Fuels in a report on Friday. Zacks Research raised shares of OPAL Fuels from a “strong sell” rating to a “hold” rating in a research note on Tuesday, May 5th. Finally, Wall Street Zen upgraded shares of OPAL Fuels from a “strong sell” rating to a “sell” rating in a report on Saturday, August 1st. One investment analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Sell” and a consensus 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.