Fuel Tech shares traded higher on Wednesday after the company reported better-than-expected Q3 EPS and sales results.
Fuel Tech, Inc. (FTEK) stock was soaring on Wednesday with high volume followed by positive third quarter earnings for the period ended Sep. 30, 2020.
FTEK soared higher in the premarket kicking off the session at $1.07 compared to the previous close of $0.76. The stock traded at the day’s high of $1.97 before closing at $1.25, up by 64.26%. The stock traded with the 3rd highest volume of 159 million.
The stock market is recovering from the pandemic hit and stocks are making notable movements highlighting a stronger run in the future. Fuel Tech, despite having experienced some deferred decision-making due to uncertain circumstances of the COVID-19 pandemic, has recovered well and obtained encouraging results that projects a better enterprise future.
Fuel Tech increased its revenues by26.4%, from $6.5 million to $8.2 million in comparison with last year’s quarter. The revenue growth was driven by both the APC and FUEL CHEM segments.
The gross margins consisted of 72.4% of revenues in Q3 2020 compared to 44.8% in Q3 2019. While the net income from operations was $2.4 million compared to a net loss of $(1.3) million in the same period last year.
The financial performance was primarily driven by a settlement with its insurance carrier, bringing in approximately $2.6 million in proceeds. The proceeds of the settlement were received in the fourth quarter of 2020. However, the growth was impacted by the recording of receivables, resulting in a reduction in the cost of salesat the APC business.
Fuel Tech, one of the leading specialized manufacturers of engine management systems, is looking forward to pursuing three new opportunities to demonstrate its dissolved gas infusion technology.
The first deal is with a new customer in the paper and pulp business based in the Pacific Northwest. While the remaining two parties will work on the municipal wastewater treatment in collaboration with the firm’s partner Kadance Corporation.
Moreover, the company also signed a new license agreement with Kadance, which is based on Fuel Tech’s DGI technology.
Fuel Tech, Inc. (FTEK) is currently focused on its Air Pollution Control (APC) business segment for providing custom-engineered solutions for the customers. The company is involved in various projects and if the bids are selected by the end of this year, Fuel Tech will increase its backlog for 2021 and over $10 to $15 million.