What Happened?
Shares of environmental services provider Montrose (NYSE: MEG) jumped 14.7% in the afternoon session after the company reported strong first quarter 2025 results which significantly beat analysts' revenue, EPS, and EBITDA expectations. Revenue climbed nearly 15% from the same period last year, with strength in the Measurement and Analysis and Remediation and Reuse segments more than offsetting declines in emergency response and permitting project revenues. Montrose also announced its first-ever stock repurchase program and completed a $60 million preferred equity redemption, showcasing its balance sheet strength and confidence in future cash flows. Zooming out, we think this was a good print with some key areas of upside.
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What The Market Is Telling Us
Montrose’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. But moves this big are rare even for Montrose and indicate this news significantly impacted the market’s perception of the business.
Montrose is down 7.2% since the beginning of the year, and at $17.38 per share, it is trading 65.1% below its 52-week high of $49.82 from May 2024. Investors who bought $1,000 worth of Montrose’s shares at the IPO in July 2020 would now be looking at an investment worth $789.77.
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