Latest news with #QRHC
Yahoo
14-05-2025
- Business
- Yahoo
Quest Resource price target lowered to $5.50 from $6.50 at Northland
Northland analyst Owen Rickert lowered the firm's price target on Quest Resource (QRHC) to $5.50 from $6.50 and keeps an Outperform rating on the shares. Q1 results came in roughly in-line, reflecting previously discussed temporary cost pressures, while the reduction in revenue can be attributed to lower volumes due to client attrition and lower volumes at a select number of larger clients, the analyst tells investors. Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on QRHC: Disclaimer & DisclosureReport an Issue Quest Resource Amends Credit Agreements for Flexibility Quest Resource Reports Q1 2025 Financial Results Quest Resource reports Q1 EPS (13c), consensus (5c) QRHC Earnings this Week: How Will it Perform? Quest Resource Modifies Board with New Cooperation Agreement Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Quest Resource Holding Corp (QRHC) Q1 2025 Earnings Call Highlights: Strategic Moves and ...
Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Quest Resource Holding Corp (NASDAQ:QRHC) completed the sale of a non-core part of its business, generating $5 million in cash and reducing debt. The company has implemented cost reduction actions, reducing SG&A costs by $3 million on an annualized basis. New leadership appointments, including a new CEO and Senior Vice President of Operations, aim to strengthen the management team. QRHC is focused on generating cash, improving profitability, lowering debt, and increasing operating efficiency. The company has a robust sales pipeline and is actively working on expanding its client base and increasing its share of wallet with existing customers. Revenue for the first quarter decreased by 6% year-over-year, primarily due to client attrition and lower volumes at larger clients. Gross profit dollars decreased by 22% from the previous year, affected by customer attrition, lower volumes, and a shift in revenue mix. SG&A costs increased by $1.6 million compared to the previous year, partly due to separation costs and bonus accruals. The company experienced a $4.4 million loss related to the sale of a non-core business and a $1.7 million adjustment to intangible assets. Days Sales Outstanding (DSO) remain elevated, impacting cash flow, although improvements are expected by the end of the second quarter. Warning! GuruFocus has detected 8 Warning Signs with QRHC. Q: Perry, you mentioned operational excellence initiatives. Have you identified any gaps or leaks in your processes since the last call? A: Yes, we have started to baseline all our processes, not just operations but across the entire value chain. We've identified some weaknesses and have designed processes to fix those gaps. We've also implemented quick initiatives to drive immediate impacts starting in Q2. Our challenge has been converting business into profit, which we're addressing by increasing efficiencies in our operations. Perry Moss, CEO Q: Are you seeing any increase in market weakness, particularly with mature companies? A: No significant change in market weakness has been observed. Demand and volumes are slightly down, but we remain hopeful for improvement. Perry Moss, CEO Q: How is the sales pipeline looking given recent market uncertainties? A: We've seen a bit of a slowdown in some opportunities, but nothing significant. Interestingly, we're attracting prospects who have never used our model before, likely due to the economic uncertainty. Our pipeline is robust, especially in the final stages of the sales cycle, and we anticipate continued growth. Perry Moss, CEO Q: What strategies are in place to reduce Days Sales Outstanding (DSO)? A: We are working with larger clients to address inefficiencies in processing. Our new AP system provides better visibility into missing invoices, allowing us to bill faster and improve cash flow. We expect to see improvements in DSOs by the end of Q2. Brett Johnston, CFO Q: Can you provide clarity on customer attrition and its impact? A: Attrition has been mostly due to customers being acquired with different programs in place. Half of the attrition was related to the divested business. We take attrition seriously and have implemented a new customer retention plan, including developing higher-level relationships and specific customer plans. Brett Johnston, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-04-2025
- Business
- Yahoo
1 Industrials Stock with Exciting Potential and 2 to Brush Off
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 11.2% over the past six months. This drop was worse than the S&P 500's 5.6% loss. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here is one resilient industrials stock at the top of our wish list and two we're swiping left on. Market Cap: $45.75 million Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ:QRHC) is a provider of waste and recycling services. Why Do We Pass on QRHC? Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years 6.4 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders Quest Resource's stock price of $2.22 implies a valuation ratio of 5.9x forward price-to-earnings. If you're considering QRHC for your portfolio, see our FREE research report to learn more. Market Cap: $1.98 billion Started with $10,000, Hub Group (NASDAQ:HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide. Why Should You Sell HUBG? Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth High input costs result in an inferior gross margin of 12.9% that must be offset through higher volumes Earnings per share have dipped by 43.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term At $35.34 per share, Hub Group trades at 14x forward price-to-earnings. To fully understand why you should be careful with HUBG, check out our full research report (it's free). Market Cap: $856.7 million Primarily serving the oil and gas industry, Aris Water (NYSE:ARIS) is a provider of water handling and recycling solutions. Why Are We Bullish on ARIS? Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 54.9% Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 24.6% outpaced its revenue gains Free cash flow profile has moved into positive territory over the last five years, indicating the company has passed a significant test Aris Water is trading at $26.08 per share, or 15x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
Yahoo
13-03-2025
- Business
- Yahoo
Quest Resource Holding Corp (QRHC) Q4 2024 Earnings Call Highlights: Strategic Leadership ...
Release Date: March 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Quest Resource Holding Corp (NASDAQ:QRHC) is adding clients at record rates, with many initiating larger programs than previously seen. The company has a robust pipeline and is receiving positive referrals from new clients, enhancing its market reputation. QRHC completed the refinancing of its debt, reducing its blended interest rate margin by approximately 150 basis points, saving about $1 million annually. The implementation of a new vendor management system is showing progress, with zero-touch processing capabilities improving efficiency. QRHC has made significant leadership changes, including the appointment of Perry Moss as CEO, who has a strong track record in operational and general management roles. QRHC has not consistently converted top-line growth into sustained margin and profit growth, indicating execution issues. The company faced temporary cost increases due to onboarding new clients and implementing a new vendor management system. Client attrition and weakness in industrial markets have negatively impacted QRHC's results. QRHC experienced a 6.7% decrease in gross profit dollars year-over-year, primarily due to a shift in revenue mix and higher costs of services. The company recognized an impairment loss of $5.5 million related to the sale of client contracts for the mall and shopping center portion of RWS. Warning! GuruFocus has detected 6 Warning Signs with QRHC. Q: Can you provide more details on the vendor management system rollout and its impact on costs and timing? Also, could you clarify the attrition and industrial weakness issues? A: Brett Johnston, CFO: The vendor management system is substantially complete, and we are achieving our zero-touch goals. Temporary costs related to the rollout will continue into Q1, but we expect improvements by Q2. Attrition was mainly due to M&A and the mall business exit, while industrial weakness is expected to persist for a few more quarters but may improve in the second half of the year. Q: How is the sales pipeline performing, and are there any changes in timing or cadence of wins due to macroeconomic factors? A: Perry Moss, CEO: The sales pipeline has grown significantly over the last year, and we continue to see strong deal flow. We have implemented a disciplined sales process with KPIs and metrics, which gives us full visibility into the pipeline. We remain bullish on the pipeline's growth and expect continued success. Q: What are your thoughts on M&A in the near to medium term, given the focus on operational improvements and debt reduction? A: Dan Friedberg, Chairman: While past acquisitions have added scale and scope, our current focus is on paying down debt and driving efficiencies. We are not actively pursuing acquisitions in the immediate future, as we prioritize cash generation and debt reduction. Q: Can you elaborate on the expected proceeds and impact of the RWS business sale? A: Dan Friedberg, Chairman: We have a preliminary agreement in place for the RWS business sale, but we cannot comment on proceeds until the deal is finalized. The RWS business was a non-contributor to the bottom line, and its sale will reduce disruption and improve focus on core operations. Q: How confident are you that the current changes will address past execution issues and lead to consistent performance? A: Perry Moss, CEO: We are implementing an operational excellence initiative to improve processes and accountability across the company. By establishing KPIs and a performance culture, we aim to enhance execution and avoid surprises. We believe these changes will lead to a more efficient and profitable business. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
