Environmental services provider Montrose (NYSE: MEG) will be reporting earnings this Wednesday afternoon. Here’s what to look for.
Montrose beat analysts’ revenue expectations by 6% last quarter, reporting revenues of $177.8 million, up 14.5% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EPS estimates.
Is Montrose a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Montrose’s revenue to grow 8.7% year on year to $188.5 million, in line with the 8.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Montrose has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Montrose’s peers in the waste management segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Waste Connections delivered year-on-year revenue growth of 7.1%, beating analysts’ expectations by 0.7%, and Waste Management reported revenues up 19%, topping estimates by 1.1%. Waste Connections traded up 2.2% following the results while Waste Management was also up 3.4%.
Read our full analysis of Waste Connections’s results here and Waste Management’s results here.
Investors in the waste management segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Montrose is down 4.6% during the same time and is heading into earnings with an average analyst price target of $29 (compared to the current share price of $21.28).
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