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Montrose (MEG) Q3 Earnings: What To Expect

MEG Cover Image

Environmental services provider Montrose (NYSE: MEG) will be reporting results this Tuesday after the bell. Here’s what to look for.

Montrose beat analysts’ revenue expectations by 24.4% last quarter, reporting revenues of $234.5 million, up 35.3% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.

Is Montrose a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Montrose’s revenue to grow 13.5% year on year to $202.8 million, improving from the 6.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 per share.

Montrose 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. Montrose has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Montrose’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 Connections delivered year-on-year revenue growth of 5.1%, beating analysts’ expectations by 0.5%, and Casella Waste Systems reported revenues up 17.9%, topping estimates by 1.9%. Waste Connections traded up 2.7% following the results while Casella Waste Systems was also up 6.7%.

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

Investors in the waste management segment have had steady hands going into earnings, with share prices flat over the last month. Montrose is down 7.1% during the same time and is heading into earnings with an average analyst price target of $32.67 (compared to the current share price of $26.38).

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