What To Expect From Quest Resource’s (QRHC) Q2 Earnings

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08/10

Waste and recycling services provider Quest Resource (NASDAQ:QRHC) will be reporting earnings this Monday after the bell. Here’s what to look for.

Quest Resource missed analysts’ revenue expectations by 5% last quarter, reporting revenues of $68.43 million, down 5.8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates.

Is Quest Resource a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Quest Resource’s revenue to be flat year on year at $72.56 million, improving from the 1.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at Quest Resource’s peers in the waste management segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Montrose delivered year-on-year revenue growth of 35.3%, beating analysts’ expectations by 24.4%, and Waste Connections reported revenues up 7.1%, topping estimates by 0.7%. Montrose traded up 24.4% following the results while Waste Connections was also up 2.2%.

Read our full analysis of Montrose’s results here and Waste Connections’s results here.

Investors in the waste management segment have had steady hands going into earnings, with share prices flat over the last month. Quest Resource is up 8.7% during the same time and is heading into earnings with an average analyst price target of $5.50 (compared to the current share price of $2.24).

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