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Quest Resource Earnings: What To Look For From QRHC

QRHC Cover Image

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

Quest Resource missed analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $73.15 million, down 1.8% year on year. It was a softer quarter for the company, with a miss of analysts’ earnings 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 grow 9.5% year on year to $77.1 million, a reversal from the 4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.

Quest Resource Total Revenue

Analysts covering the company have generally 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 six times over the last two years.

Looking at Quest Resource’s peers in the waste management segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Waste Management delivered year-on-year revenue growth of 7.9%, beating analysts’ expectations by 1.7%, and Republic Services reported revenues up 6.5%, falling short of estimates by 1%. Waste Management traded up 5.2% following the results while Republic Services was down 2.7%.

Read our full analysis of Waste Management’s results here and Republic Services’s results here.

There has been positive sentiment among investors in the waste management segment, with share prices up 2.7% on average over the last month. Quest Resource is up 1.7% during the same time and is heading into earnings with an average analyst price target of $12.83 (compared to the current share price of $8.29).

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