Quest Resource Holding Corp (NASDAQ:QRHC)
Quest Resource Holding Corp (NASDAQ:QRHC) stock has gained over 70% after the waste management company released their Q3 2017 earnings report. QRHC shares gapped up to open at $1.48, then continued to rise to $2.91 before sellers stepped in. QRHC stock has been trading in a range between $1.90 and $2.10 since 10:30 AM EST. Volume is enormous. The stock normally trades about 38,000 shares per day, but with two hours left in today’s trading session, over 6.1 million shares have exchanged hands.
Quest Resource Q3 Financial Report
EPS for Q3 2017 was forecast by analysts at (-$0.07) and that is exactly what the company reported. Net loss improved by $1.3 million to (-$1.1) million compared with a net loss of (-$2.4) million for the third quarter of 2016. During the third quarter of 2017, operating expenses were $5.0 million, a decrease of $1.0 million, or 16%, compared with the third quarter of 2016. Adjusted EBITDA improved by $786,000 to $513,000 compared with a loss of (-$273,000) for Q3 2016.
Quest Resource Holding Corp (NASDAQ:QRHC) provides recycling and disposal services for a range of waste streams and recyclables generated by businesses. The company also operates social media and online digital platforms that contain information and instructions to recycle or properly dispose of household products and materials. Its services focuses on the waste streams and recyclables from big box, food chain, and other retailers.
QRHC Stock Performance
Year-to-date, QRHC stock is down over 50%. However, two investment forms cover Quest Resource Holding Corp (NASDAQ:QRHC) and both rate the shares as a “Strong Buy” with a consensus, one-year price target of $6.00. The stock’s 52-week low is $1.03, and its 52-week high is $3.00.
Quest Resource Holding Corp (NASDAQ:QRHC) has a market capitalization of less than $20 million but annual sales of over $175 million. Unfortunately, earnings have been challenging. In 2012 is lost (-$5.92) per share, and last year the loss was a more modest (-$0.55).
Stock dilution has been an issue for shareholders. In 2012, 7.12 million shares were outstanding. By the end of 2016, that number was 14.74 million.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.