Why did AMRC's Q3 earnings barely meet forecasts?

Ameresco's Q3 earnings did not significantly miss forecasts, but the company's stock experienced a decline due to the following factors: 1. **Challenging Outlook**: Despite reporting better-than-expected fourth-quarter earnings and revenue, Ameresco's shares plummeted due to the company's cautious outlook for 2025. The company's 2025 guidance fell short of analyst estimates, leading to concerns about its future growth prospects. 2. **Cost Overruns and Gross Margin Impact**: Ameresco faced significant cost overruns on two legacy projects, which adversely affected its gross margin. The gross margin fell to 12.5% for the quarter, significantly lower than expected. This decline in gross margin likely contributed to the earnings not meeting forecasts. In summary, while Ameresco's Q3 earnings may not have missed forecasts significantly, the company's challenging outlook and cost overrun issues contributed to the decline in its stock price.