Quest Resource (QRHC) Reports Q3: Everything You Need To Know Ahead Of Earnings

QRHC Cover Image

Waste and recycling services provider Quest Resource (NASDAQ: QRHC) will be reporting earnings this Monday afternoon. Here’s what to expect.

Quest Resource missed analysts’ revenue expectations by 17.9% last quarter, reporting revenues of $59.54 million, down 18.6% 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’ EBITDA 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, analysts are expecting Quest Resource’s revenue to decline 17.8% year on year to $59.83 million, a reversal from the 3.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 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 twice since going public.

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. Montrose delivered year-on-year revenue growth of 25.9%, beating analysts’ expectations by 10.9%, and Waste Connections reported revenues up 5.1%, topping estimates by 0.5%. Montrose traded up 5.8% following the results while Waste Connections was also up 2.7%.

Read our full analysis of Montrose’s results here and Waste Connections’s results here.

There has been positive sentiment among investors in the waste management segment, with share prices up 2.2% on average over the last month. Quest Resource is up 10.5% during the same time and is heading into earnings with an average analyst price target of $3.08 (compared to the current share price of $1.47).

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