Quest Resource Q3 revenue rises year over year on customer renewals

Quest Resource Holding

Yesterday 21:51

Overview
US environmental waste services firm's Q3 revenue rose 0.7% yr/yr
Gross profit declined 0.7% yr/yr, while gross margin improved sequentially
Adjusted EBITDA increased yr/yr and sequentially

Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers
MARGIN GAINS - Co said sequential gross margin improvement was driven by margin gains with industrial customers and ongoing business optimization
REVENUE DIVERSIFICATION - Sequential growth in non-industrial revenue contributed to a more balanced and diversified revenue base, per co
CUSTOMER RENEWALS - Co said renewals and increased share-of-wallet with existing customers supported results

Company press release: ID:nGNX5cMH7M

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$63.80 mln
$66.30 mln (2 Analysts)
Q3 Adjusted EBITDA
Beat
$3.40 mln
$3.15 mln (2 Analysts)
Q3 Gross Margin
 
17.80%
 
Q3 Gross Profit
 
$11.40 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the environmental services & equipment peer group is "buy"
Wall Street's median 12-month price target for Quest Resource Holding Corp is $2.50, about 137% above its November 4 closing price of $1.06

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)