Why the Envirosuite (ASX: EVS) share price bumped up 6% today

The Envirosuite (ASX: EVS) share price is up today off the back of the company's second quarter results. Let's take a look.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Envirosuite Ltd (ASX: EVS) share price launched up almost 6% in opening trade today following release of the company's second-quarter results. Its shares have since retreated to 17.5 cents at the time of writing, up 2.94%.

Despite gaining more than 13% over the past six months, the Envirosuite share price has dropped roughly 37% in the 12 months since January 2020.

Why the Envirosuite share price is lifting today

Envirosuite, which develops environmental management technology solutions, listed four key highlights in its quarterly sales update. The company reported $1.1 million in new annual recurring revenue (AAR) during the quarter, having hooked 19 new clients. Envirosuite renewed 37 contracts totalling $2.7 million.

The company earned $3 million in new non-recurring revenue and claims to have $12 million of new APR in unweighted pipeline looking ahead to quarter three. According to Envirosuite, this works out to more than 150 opportunities being pursued.

Other quarterly highlights include a three-year construction deal in the UK, two new airport wins in Europe and a new contract with one of Australia's largest container ports.  

One billion shares outstanding

With one billion shares outstanding, the Institutional Brokers Estimates System (IBES) rates Envirosuite a buy. Curiously, the same Envirosuite share price report scored the company as a 2 out of 10 with a negative outlook. 

This score is calculated by evaluating a company's earnings, fundamentals, relative valuation, risk and price momentum.

The major difference between these two perspectives is that the first one is from a human analyst, the second born out of artificial intelligence (AI).

The Envirosuite market cap presently sits at 174.4 million.

What did the CEO say?

Commenting on the quarterly performance, Envirosuite CEO Peter White said:

EVS continues to build out its product portfolio across air, water and noise as it creates world-leading predictive solutions across wastewater and water, mining, airports and industrial customers.

Envirosuite's focus for 2021 continues to be on transforming our business model to produce higher gross margins through incorporating an ever increasing level of software and automation in our solutions and developing higher value products and outcomes for our customers as we cement our leadership in the environmental intelligence market.

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Hands reaching high for a trophy with a sunset in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another day and another record high for ASX shares this Wednesday.

Read more »

A piggy bank on the cloud in the blue sky symbolising a record high share price.
Record Highs

Here's why the Vanguard Australian Shares Index ETF (VAS) just hit an all-time ASX high

If you own this ETF, you've had a great day.

Read more »

A woman frowns and crosses her arms.
Bank Shares

40% downside! Broker values CBA shares at $80 — is the fun over?

Valuations remain the top concern among brokers.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Deep Yellow, DroneShield, Mount Gibson Iron, and Praemium shares are falling

These shares aren't having a good time on hump day. What's going on?

Read more »

Woman looks amazed and shocked as she looks at her laptop.

Have you heard of this ASX gold stock? It's up 114% in 8 days!

Investors have sent the ASX gold stock flying higher in July. But why?

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Share Gainers

Why Cettire, Core Lithium, Northern Star, and Step One shares are charging higher

These shares are having a good time on hump day. But why?

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Record Highs

ASX 200 hits record high, UBS keeps end of year target steady

It's the second all-time high for the benchmark index this week.

Read more »

Two brokers analysing stocks.
Broker Notes

Citi names these 3 ASX shares to buy now

Here are the latest upgrades from Citi.

Read more »