US Ecology, Inc. (NASDAQ:ECOL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
US Ecology, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 12.82% to $0.44 in the quarter versus EPS of $0.39 in the year-earlier quarter.
Revenue: Rose 14.56% to $45.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: US Ecology, Inc. reported adjusted EPS income of $0.44 per share. By that measure, the company beat the mean analyst estimate of $0.37. It missed the average revenue estimate of $47.2 million.
Quoting Management: “Solid waste volumes, a favorable mix of higher margin niche business and continued operational excellence combined to produce another record quarter and strong first half 2013 results,” commented President and Chief Executive Officer, Jeff Feeler. “Our Event Business growth was driven by strong commercial activity, more than offsetting expected softness in government business. Our pipeline for Event Business remains healthy, with a number of projects currently shipping and a series of new opportunities slated for the second half of 2013. This, combined with solid growth in our Base Business and demand for our thermal recycling services, puts the Company on track for a strong finish to 2013 and financial results towards the upper end our previous guidance range of $1.45 to $1.55 diluted earnings per share, excluding any foreign currency gains or losses and business development expense, and $62 to $65 million of Adjusted EBITDA.”
Key Stats (on next page)…
Revenue increased 6.76% from $42.9 million in the previous quarter. EPS increased 51.72% from $0.29 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.46 to a profit $0.45. For the current year, the average estimate has moved down from a profit of $1.56 to a profit of $1.50 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)