CECO Earnings Prediction
The chart below shows how CECO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CECO sees a -1.40% change in stock price 10 days leading up to the earnings, and a +6.33% change 10 days following the report. On the earnings day itself, the stock moves by +1.14%. This data can give you a slight idea of what to expect for the next quarter's release.
CECO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
135.51M
-9.29%
-1.46%
Gross Margin
31.62%
14.77%
-7.54%
Operating Margin
6.34%
-11.58%
-17.56%
Net Margin
1.87%
-24.60%
-47.77%
EPS
0.06
-33.33%
-50.00%
No Data Available
CECO Earnings Analysis
Ceco Environmental Corp Corporation (CECO.O) Earnings Conference Call
Positive
Backlog Balance Surge: Record backlog balance of $438 million, an 11% increase year-over-year and a 12% sequential increase, indicating strong demand and future revenue potential.
Record New Orders: New orders exceeded $160 million in the quarter, representing a record for Q3 and contributing to a balanced booking across small, medium, and large orders.
Energy Transition Project Success: The company booked a significant energy transition project related to gas power, which has been in the sales pipeline for the entire year, indicating strong future revenue streams.
Global Expansion Strategy: The acquisition of WK Group expands the company's global reach and leadership position in solving customer challenges, enhancing the overall service offering.
Acquisition Funding and Growth: The acquisition of Profire Energy is expected to close in early 2025, with an estimated funding net proceeds of approximately $108 million at closing, indicating strong financial backing for future growth.
Negative
Revenue Shortfall Analysis: Third quarter revenues fell short of expectations, with a reported revenue of $136 million, down 9% year-over-year due to delays in large projects.
Project Execution Delays: The company experienced customer-driven delays in project execution, impacting revenue recognition and contributing to a shortfall of approximately 2 to 3 points in revenue.
Decline in Adjusted EBITDA: Adjusted EBITDA was down 5% year-over-year, reflecting lower volumes and operational challenges, resulting in an adjusted EBITDA margin of 10.6%.
Gross Profit Margin Decline: The gross profit margin decreased to 33.4%, down from the same period in 2023, indicating challenges in material sourcing and productivity initiatives.
Record Backlog Concerns: The backlog reached a record level of $438 million, but this was accompanied by significant project delays, raising concerns about future revenue recognition.
CECO FAQs
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CECO Earning Call Sentiment
CECO Environmental Corp. (CECO) Q3 2024 Earnings Call Transcript
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CECO.O
-2.11%Positive
The earnings call highlights several positive factors: increased backlog and orders, higher guidance for revenue and EBITDA, and a strategic acquisition with potential synergies. Despite a revenue decline, gross profit margin improvements and a strong sales pipeline are promising. The Q&A section reveals confidence in future opportunities and synergies from acquisitions. However, uncertainties in project timelines and cash flow constraints are noted. Overall, the raised guidance and acquisition strategy suggest a positive sentiment, likely leading to a stock price increase in the short term.