Waste and recycling services provider Quest Resource (NASDAQ:QRHC) will be announcing earnings results this Thursday after the bell. Here’s what to expect.
Quest Resource missed analysts’ revenue expectations last quarter, reporting revenues of $58.91 million, down 15.8% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
Is Quest Resource a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Quest Resource’s revenue to decline 9.1% year on year, a further deceleration from the 5.8% decrease it recorded in the same quarter last year.
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. Quest Resource has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Quest Resource’s peers in the waste management segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Waste Connections delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 0.8%, and Casella Waste Systems reported revenues up 9.6%, topping estimates by 0.5%. Waste Connections traded up 7.9% following the results while Casella Waste Systems was also up 9.6%.
Read our full analysis of Waste Connections’s results here and Casella Waste Systems’s results here.
There has been positive sentiment among investors in the waste management segment, with share prices up 9.9% on average over the last month. Quest Resource is down 3.4% during the same time and is heading into earnings with an average analyst price target of $3.25 (compared to the current share price of $1.13).
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