CECO Environmental Earnings Preview: What to Expect on October 29th

## CECO Environmental Earnings Preview: What to Expect on October 29th

Investors are eagerly awaiting CECO Environmental’s upcoming quarterly earnings release scheduled for Tuesday, October 29th. The company is expected to report earnings per share (EPS) of $0.19, setting the stage for a potentially exciting announcement. While surpassing estimates is a positive sign, investors will also be looking for guidance on the next quarter, as market reactions are often heavily influenced by future projections.

Looking Back at Past Earnings Performance:

Last quarter, CECO Environmental exceeded EPS expectations by $0.04, resulting in a 3.88% increase in share price the following day. Here’s a glimpse into CECO Environmental’s past earnings performance and its impact on share price:

| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $0.16 | $0.20 | 4.0% |
| Q1 2024 | $0.11 | $0.11 | 2.0% |
| Q4 2023 | $0.24 | $0.28 | 7.0% |
| Q3 2023 | $0.18 | $0.22 | -5.0% |

Current Market Sentiment and Share Price Analysis:

As of October 25th, CECO Environmental shares were trading at $26.77. Over the past 52 weeks, the stock has experienced a remarkable 62.05% increase. This positive trend suggests long-term shareholders are optimistic heading into the earnings release.

Analyst Insights and Expectations:

Understanding market sentiment and expectations within the industry is crucial for investors. Here’s a breakdown of analyst views on CECO Environmental:

*

Consensus Rating:

The consensus rating for CECO Environmental is

Buy

, based on 5 analyst ratings.
*

Average 1-Year Price Target:

The average one-year price target stands at $34.8, indicating a potential 30.0% upside.

CECO Environmental vs. Industry Peers:

To gain a comprehensive perspective, let’s compare CECO Environmental’s performance with three key industry players: Montrose Environmental Gr, BrightView Hldgs, and Quest Resource Holding.

*

Montrose Environmental Gr:

Analysts favor a

Buy

trajectory with an average 1-year price target of $51.25, suggesting a potential 91.45% upside.
*

BrightView Hldgs:

Analysts maintain an

Outperform

rating with an average 1-year price target of $15.55, indicating a potential 41.91% downside.
*

Quest Resource Holding:

Analysts currently favor a

Buy

trajectory with an average 1-year price target of $12.75, suggesting a potential 52.37% downside.

Key Takeaways from Peer Analysis:

| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| CECO Environmental | Buy | 6.46% | $49.05M | 1.92% |
| Montrose Environmental Gr | Buy | 8.94% | $69.24M | -3.34% |
| BrightView Hldgs | Outperform | -3.55% | $177.60M | 0.74% |
| Quest Resource Holding | Buy | -1.81% | $13.53M | -2.30% |

This analysis reveals that CECO Environmental ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. However, in terms of Return on Equity, CECO Environmental is at the bottom compared to its peers.

Understanding CECO Environmental’s Business:

CECO Environmental Corp serves the energy, industrial, and other niche markets. The company operates through two segments:

*

Engineered Systems:

This segment serves the power generation, refinery, water/wastewater, and midstream oil and gas markets.
*

Industrial Process Solutions:

This segment caters to a diverse range of industrial applications including air pollution control, beverage can production, fluid handling, electric vehicle manufacturing, food and beverage processing, semi-conductor manufacturing, process filtration, pharmaceuticals, petrochemicals, wastewater treatment, wood manufacturing, desalination, and aquaculture.

The majority of CECO Environmental’s revenue is generated from the Engineered Systems Segment.

Key Financial Insights:

*

Market Capitalization:

CECO Environmental’s market capitalization is relatively small compared to industry averages, reflecting a smaller scale relative to its peers.
*

Revenue Growth:

Over the past three months, CECO Environmental achieved a revenue growth rate of approximately 6.46% (as of June 30th, 2024), indicating a substantial increase in top-line earnings. However, compared to competitors, the company’s growth rate is below the average within the Industrials sector.
*

Net Margin:

CECO Environmental’s net margin is above industry standards, showcasing the company’s exceptional financial performance and effective cost management.
*

Return on Equity (ROE):

CECO Environmental’s ROE exceeds industry averages, demonstrating effective utilization of equity capital.
*

Return on Assets (ROA):

CECO Environmental’s ROA surpasses industry standards, highlighting the company’s ability to generate strong returns from its assets.
*

Debt Management:

CECO Environmental maintains a debt-to-equity ratio below the industry average, reflecting a conservative financial approach with a lower dependency on debt financing.

Stay Informed with CECO Environmental Earnings:

To stay up-to-date on all earnings releases for CECO Environmental, visit their earnings calendar on our site. This information will provide valuable insights into the company’s financial performance and future outlook.

Disclaimer:

This article was generated by an automated content engine and reviewed by an editor. It does not constitute investment advice. Please consult with a qualified financial professional for investment recommendations.