- Quest Resource ( NASDAQ: QRHC ) stock slid 16.5% on Tuesday despite the waste and recycling services provider reporting Q2 results that were broadly in line with expectations .
- Q3 adj. EPS was $0.04 vs. $0.06 in Q3 2021, while adj. EBITDA rose 56.9% Y/Y to $3.8M.
- There was an adjustment of $850K for expenses related to one vendor at a recently acquired company, which lowered gross profit. Without that cost, adj. EBITDA would have been $4.7M.
- Revenue increased 96.4% $73.4M, driven by growth from new customers, expansion with existing customers and M&A activity.
- "We're able to offset inflationary cost pressure with flexible pricing and cost recovery fees. And due to the nature of our pricing structure, gross profit dollars were not materially impacted by commodity price fluctuations," said CEO Ray Hatch in a post-earnings call .
- "We see relatively stable economic activity across our customer base, which positions us well for continued profitable growth during Q4 and next year," he added.
- Shares of Quest Resource ( QRHC ) have gained ~21% in the last one year.
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Quest Resource stock slides over 16% despite in-line Q2 earnings