US Ecology up nearly 10% despite predictions

US Ecology, Inc (NASDAQ: ECOL) made sizeable gains in the market may be due to their investor presentation that was held on Sunday 4/30/017.  Although Q1 reports a loss in revenues, Jeff Feeler, CEO and Chairman of US Ecology stated "First quarter operating results and adjusted EBITDA were consistent with our expectations as we cycled some completed event projects as well as a Field and Industrial Services contract that was not renewed," This coincides with the predictions of three analysts that expected on average, that ECOL will report $0.28 per share for Q1 2017. The lowest estimate was $0.19 whereas the highest per share estimate was at $0.35. In the end, the Q1 2017 results revealed an EPS of $0.23 per share, which is down from $0.32 per diluted share from Q1 2016.

During their investor presentation they affirmed the companies’ vision, “To be the premier North American provider of environmental services where the highest caliber people work delivering sustainable solutions for our customers and long term value for stockholders and the communities in which we live and operate” The reports acknowledges that the company’s event business was down by 9%, which was expected as they deferred work to benefit the latter quarters of the year. This delay also includes a larger multi-year project expected to contribute starting in second quarter of 2017.

Despite the low numbers recorded, the investor presentation also mentioned the positive trends emerging in economy of the industry as a whole. The presentation points out that, “normal seasonality expected; Q1 expected to be the lowest quarter in revenues and profits and results in are expected to build over the balance of the year. This is in addition to their base business expected to grow between 3-5% as well as continued growth in their event pipeline.

"Overall, business conditions remain in-line with our expectations," added Feeler. "Our underlying Base Business remains strong and we continue to bid on and secure Event Business opportunities, further supporting our view of sequentially stronger quarterly financial performance as we progress through the year." Added Jeff Feeler.

It appears that investors may feel the same way based on the current market prices and movement.

About

US Ecology, Inc. is a provider of environmental services to commercial and government entities. The Company offers treatment, disposal and recycling of hazardous, non-hazardous and radioactive waste, as well as a range of field and industrial services. The Company operates in two business segments: Environmental Services, and Field & Industrial Services.

Leave a Comment