The 10-second takeaway
For the quarter ended March 31 (Q1), US Ecology missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share improved significantly.
Margins improved across the board.
US Ecology logged revenue of $33 million. The one analyst polled by S&P Capital IQ expected a top line of $35.2 million on the same basis. GAAP reported sales were 3.3% lower than the prior-year quarter's $34.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The three earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. GAAP EPS of $0.25 for Q1 were 39% higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.6%, 890 basis points better than the prior-year quarter. Operating margin was 19.6%, 600 basis points better than the prior-year quarter. Net margin was 13.7%, 420 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $40.9 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $165.7 million. The average EPS estimate is $1.13.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 495 members rating the stock outperform and 13 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 129 give US Ecology a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on US Ecology is outperform, with an average price target of $21.00.
Over the decades, small-cap stocks like US Ecology have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add US Ecology to My Watchlist.