NYSE$ONT

Montrose Environmental Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Montrose reported strong revenue growth and margin expansion, increased year-to-date operating cash flow, and raised revenue and consolidated adjusted EBITDA outlook for full year 2023.

Montrose Environmental Group announced strong second quarter performance with record levels of revenue and Consolidated Adjusted EBITDA, driven by robust demand across most business lines. The company is raising its full year revenue and Consolidated Adjusted EBITDA guidance.

  • Second quarter revenue increased by 13.7% year-over-year to $159.1 million.
  • Net loss was $(7.2) million, or a loss of $(0.38) per share, compared to a net loss of $(7.8) million, or a loss of $(0.40) per share in the prior year quarter.
  • Adjusted Net Income was $8.9 million, and Adjusted Net Income per Share was $0.16.
  • Second quarter Consolidated Adjusted EBITDA was $21.2 million, representing 13.3% of revenue, compared to $15.6 million in the prior year quarter.

Headline financials

Total Revenue

$159M

Previous: $140M+13.7%
EPS (adj)

$0.13

Previous: $0.03+333.3%
Leverage Ratio

1.9

No prior period
Capital Expenditures

$16.8M

Previous: $3.24M+419.2%
Free Cash Flow

$4.67M

Previous: $12.1M-61.6%
Net Income

-$7.2M

Previous: -$7.8M+7.7%
Operating Income

-$6.09M

Previous: -$5.75M-6.1%
Gross Profit

$60.9M

Previous: $49.5M+23.1%
Cash & Equivalents

$23.3M

Previous: $98.4M-76.3%
Total Assets

$826M

Previous: $788M+4.8%
Stock-Based Comp

$11.1M

Previous: $10.9M+1.4%

Revenue & EPS history

Montrose · Revenue · Quarterly

$159M

Q2 2023+13.7%vs Q2 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Montrose · $97.7M total across 2 segments · Q2 2023

  • Measurement and Analysis
    $50.1M
  • Remediation and Reuse
    $47.6M

Forward guidance

The Company has increased its expectation for full year 2023 revenue and Consolidated Adjusted EBITDA. 2023 Revenue is expected to be in the range of $590 million to $640 million and Consolidated Adjusted EBITDA is expected to be in the range of $75 million to $81 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+2.5%

Avg return

Earnings day

+3.8%

Avg return

5 days after

+0.3%

Avg return

30 days after

48%

13 / 27 earnings

Positive

+32.6%

Q4 2024

Best reaction

-14.0%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+22.6%+21.4%-9.7%
Q3 2025+5.1%+0.3%+6.8%
Q2 2025+8.1%+20.7%+34.5%
Q1 2025+17.3%+23.6%+42.3%
Q4 2024+32.6%+6.9%-17.4%
Q3 2024-11.3%-18.5%-36.5%
Q1 2024-8.2%-6.9%-5.0%
Q4 2023+15.2%+9.4%+18.7%
Q3 2023+4.8%+4.6%+28.3%
Q2 2023+10.4%+3.9%-6.0%
Q1 2023+15.4%+16.4%+41.7%
Q4 2022-14.0%-26.4%-31.1%
Q3 2022-6.1%+18.7%+7.8%
Q2 2022+0.4%+9.7%+0.7%
Q1 2022-8.7%-9.5%-13.0%
Q4 2021-9.4%+3.2%+19.0%
Q3 2021+2.0%+1.6%-5.9%
Q2 2021+4.8%-3.8%+13.2%
Q1 2021-9.2%-6.6%-9.3%
Q4 2020+6.1%+8.7%+30.5%
Q3 2020-0.5%+11.6%-7.1%
Q3 2019-0.5%+11.6%-7.1%
Q1 2020-2.1%+0.5%-17.3%
Q2 2020-2.1%+0.5%-17.3%
Q1 2019-2.1%+0.5%-17.3%
Q2 2019-2.1%+0.5%-17.3%
Q4 2019-2.1%+0.5%-17.3%
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q2 2013

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