Orbital Energy Misses Q2 Expectations; Shares Fall

Shares of construction engineering firm Orbital Energy Group (OEG) lost 3.5% on Monday after the company’s second-quarter 2021 financial results fell short of expectations. The shares slid another 1% in extended trade to finally close at $3.01.

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Headquartered in Texas, Orbital is engaged in the development, acquisition and commercialization of electro-mechanical technologies and products.

The company reported a loss of $0.16 per share, narrower than the year-ago loss of $0.31 per share but wider than the Street’s estimate of a loss of $0.12 per share. (See Orbital stock chart on TipRanks)

Total revenue rose 110% year-over-year to $16.3 million, missing analysts’ expectations of $22.03 million. Total backlog amounted to $294.9 million on June 30, 2021, up from $40.4 million on December 31, driven by backlog growth across all operating segments.

Orbital said, “The company expects margins to improve substantially during the course of 2021 as Orbital Telecom Services contributes more revenues, Orbital Power Services continues to gain efficiencies and increase revenues, and several large Orbital Solar Services projects begin.”

Two months ago, B. Riley Financial analyst Alex Rygiel assumed coverage on the stock with a Buy rating and a price target of $7.

In a research note to investors, the analyst said, “Orbital is well-positioned for significant growth in 2021, 2022 and beyond with an established platform within the solar market and multi-hundred million dollar pipeline of projects.”

Overall, the stock has a Moderate Buy consensus based on 1 Buy. The average Orbital Energy Group price target of $7 implies 130.3% upside potential. Shares of the company have gained 398.4% over the past year.