Shares of Montrose Environmental Group (NYSE: MEG) surged 11.36% in after-hours trading on Wednesday, following the release of its first-quarter 2025 financial results that exceeded analyst expectations, the announcement of a new stock repurchase program, and increased full-year guidance.
The environmental services company reported quarterly earnings of $0.07 per share, significantly beating the analyst consensus estimate of $(0.48). While this represents a 56.25% decrease from the same period last year, the positive surprise likely contributed to investor enthusiasm. Montrose's quarterly revenue also impressed, coming in at $177.80 million, surpassing the analyst estimate of $168.12 million and marking a 14.47% increase year-over-year.
Adding to the positive sentiment, Montrose Environmental Group announced its inaugural stock repurchase program of up to $40.0 million, signaling confidence in the company's financial position and commitment to enhancing shareholder value. Furthermore, the company reaffirmed its expected full-year 2025 revenue and increased its guidance, with adjusted EBITDA now projected to be in the range of $103-110 million. These factors combined to drive the substantial after-hours stock price increase, as investors responded favorably to the company's strong performance and optimistic outlook.
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