Shares of Montrose Environmental Group (MEG) surged 11.36% in after-hours trading on Wednesday, following the company's announcement of better-than-expected first-quarter results, an inaugural stock repurchase program, and increased guidance for 2025.
The environmental services company reported quarterly earnings of $0.07 per share, significantly beating analyst estimates of -$0.48. While this represents a 56.25% decrease from the same period last year, the positive surprise likely contributed to the stock's rally. Montrose's quarterly revenue also exceeded expectations, coming in at $177.80 million, surpassing the consensus estimate of $168.12 million and marking a 14.47% increase year-over-year.
Adding to investor optimism, Montrose Environmental Group announced an inaugural stock repurchase program of up to $40.0 million, signaling confidence in the company's financial position and future prospects. Furthermore, the company reaffirmed its expected full-year 2025 revenue and increased its guidance, with adjusted EBITDA now projected at $103-110 million for the fiscal year. These positive developments have collectively fueled the significant after-hours price movement, as investors react to the company's strong performance and optimistic outlook.
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