QRHC Earnings Prediction
The chart below shows how QRHC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, QRHC sees a -0.28% change in stock price 10 days leading up to the earnings, and a +1.83% change 10 days following the report. On the earnings day itself, the stock moves by +1.20%. This data can give you a slight idea of what to expect for the next quarter's release.
QRHC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
72.77M
3.32%
-0.52%
Gross Margin
12.83%
-10.47%
-15.98%
Operating Margin
-1.25%
-204.17%
-150.81%
Net Margin
-4.65%
59.79%
124.64%
EPS
-0.16
-60.00%
128.57%
No Data Available
QRHC Earnings Analysis
Quest Resource Holding Corporation Corporation (QRHC.O) Earnings Conference Call
Positive
Q3 Revenue Increase: 1. Revenue Growth: Quest Resource Holding Corporation reported revenue of $72.8 million for Q3 2024, reflecting a 3.3% increase year-over-year, driven by strong contributions from new and existing clients.
New Client Revenue Potential: 2. New Client Contributions: The company added 9 new clients in 2024, which generated approximately 60% of their anticipated full-year revenue run rate during the third quarter, indicating significant future revenue potential.
Onboarding Activity Surge: 3. Record Onboarding Activity: During Q3, Quest onboarded over 2,200 locations, marking a more than tenfold increase from the same period last year, showcasing the company's capacity for rapid growth and client integration.
Technology-Driven Cost Savings: 4. Cost Savings from Technology: The implementation of a new automated vendor management system is expected to yield $2 million to $3 million in recurring cost savings at the current run rate, enhancing operational efficiency.
Future Revenue Projections: 5. Strong Future Outlook: Looking into 2025, Quest anticipates realizing over $20 million in net incremental revenue from new client wins, excluding growth from existing clients, indicating robust growth prospects ahead.
Negative
Gross Profit Decline: 1. Declining Gross Profit: Gross profit dollars decreased by 5.9% year-over-year and 13.5% sequentially, primarily due to a shift in revenue mix, higher-than-anticipated costs, and increased billing credits.
Client Attrition Impact: 2. Revenue Loss from Client Attrition: The company experienced a $13 million decrease in revenue attributed to softer-than-expected conditions at certain clients in the industrial end market and client attrition.
Operating Cost Increase: 3. Increased Operating Costs: The third quarter saw a temporary increase in costs related to onboarding new clients and implementing a new vendor management system, which negatively impacted profitability.
Billing Credits Impact: 4. Higher Billing Credits: The company issued approximately $1 million in one-time billing credits due to inaccurate information from clients, which directly affected gross profit margins.
Cash Utilization Concerns: 5. Cash Utilization for Operations: Approximately $500,000 in cash was used to fund operations during the third quarter, indicating potential liquidity concerns amidst operational challenges.
QRHC FAQs
How does QRHC typically perform around its earnings report dates?
Is Quest Resource Holding Corporation (QRHC) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
QRHC Earning Call Sentiment
Quest Resource Holding Corporation (QRHC) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
QRHC.O
0%Positive
The earnings call reveals mixed signals: a slight revenue increase but declining gross profits and operational challenges. The Q&A indicates positive developments in sales cycles and business pipeline, yet uncertainties in refinancing and cash flow management remain. The absence of a share buyback or dividend program further tempers optimism. Overall, the sentiment balances between cautious optimism from business growth and concerns from financial metrics and operational issues, resulting in a neutral outlook.
