Quest Resource (NASDAQ:QRHC) Issues Quarterly Earnings Results

Quest Resource (NASDAQ:QRHC) posted its quarterly earnings data on Thursday. The business services provider reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.06), Zacks reports. The firm had revenue of $61.74 million for the quarter, compared to the consensus estimate of $62.21 million. Quest Resource had a negative return on equity of 12.07% and a negative net margin of 3.00%.

Here are the key takeaways from Quest Resource’s conference call:

• The company reported $61.7 million in revenue (down ~10% year?over?year) but up 5% sequentially; gross profit was $9.7 million (down ~12% YoY) with a 15.7% gross margin, signaling ongoing top?line pressure despite quarter?end improvement.
• Management highlighted diversification gains and a meaningful new QSR win (a 7?figure account, ~50% of the franchisee portfolio) onboarded May 1 with minimal service changeouts, which should ramp quickly and help offset industrial seasonality.
• Operational initiatives are reducing costs and improving cash: SG&A fell ~26% YoY, operating cash flow was slightly positive (~$200k), working capital days improved to 11.5, and the company refinanced its ABL and made a $2 million early term?debt payment to lower interest expense and increase financial flexibility.
• Material risk remains from a few soft industrial (ag) customers that reduced volumes (~$4M impact) and the company cautioned that elevated fuel prices, geopolitical events and mix effects could sustain margin pressure through 2026.

Quest Resource Price Performance

Shares of QRHC stock traded up $0.07 during mid-day trading on Friday, reaching $1.15. The company’s stock had a trading volume of 98,812 shares, compared to its average volume of 41,823. Quest Resource has a 1-year low of $0.81 and a 1-year high of $2.64. The company has a market cap of $24.10 million, a P/E ratio of -3.38 and a beta of 0.21. The company has a debt-to-equity ratio of 1.58, a quick ratio of 1.30 and a current ratio of 1.30. The firm’s 50-day moving average is $1.25 and its two-hundred day moving average is $1.65.

Institutional Investors Weigh In On Quest Resource

Large investors have recently made changes to their positions in the company. Qube Research & Technologies Ltd bought a new stake in shares of Quest Resource in the 2nd quarter worth about $50,000. Jane Street Group LLC grew its holdings in shares of Quest Resource by 91.4% in the 4th quarter. Jane Street Group LLC now owns 27,233 shares of the business services provider’s stock worth $51,000 after purchasing an additional 13,004 shares during the last quarter. Bank of America Corp DE grew its holdings in shares of Quest Resource by 36.5% in the 4th quarter. Bank of America Corp DE now owns 15,356 shares of the business services provider’s stock worth $100,000 after purchasing an additional 4,104 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Quest Resource by 22.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 51,990 shares of the business services provider’s stock worth $135,000 after purchasing an additional 9,647 shares during the last quarter. Finally, Rothschild Wealth LLC bought a new stake in shares of Quest Resource in the 4th quarter worth about $274,000. Institutional investors own 48.16% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Wall Street Zen upgraded shares of Quest Resource to a “hold” rating in a research note on Saturday, January 10th. Zacks Research cut shares of Quest Resource from a “hold” rating to a “strong sell” rating in a research note on Tuesday, March 31st. Finally, Weiss Ratings upgraded shares of Quest Resource from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday. One investment analyst has rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Sell” and an average target price of $2.25.

About Quest Resource

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. The company provides disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes.