NYSE$ONT

Montrose Environmental Group Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced fourth quarter and full year 2023 results, reporting record full year revenue and cash flow from operations.

Montrose Environmental Group reported an 18.8% increase in Q4 revenue to $165.7 million, driven by acquisitions and organic growth across segments. Net loss decreased to $(1.4) million, with Adjusted Net Income at $10.6 million and Consolidated Adjusted EBITDA at $17.5 million.

  • Total revenue in the fourth quarter of 2023 was $165.7 million compared to $139.5 million in the prior year quarter, an increase of 18.8%.
  • Net loss was $(1.4) million, or a loss of $(0.18) per share basic and diluted, in the fourth quarter of 2023 compared to a net loss of $(10.8) million, or a loss of $(0.50) per share basic and diluted, in the prior year quarter.
  • Adjusted Net Income was $10.6 million, and Diluted Adjusted Net Income per Share was $0.27, in the fourth quarter of 2023 compared to Adjusted Net Income of $9.0 million, and Diluted Adjusted Net Income per Share of $0.25 in the prior year quarter.
  • Fourth quarter 2023 Consolidated Adjusted EBITDA was $17.5 million, compared to $17.8 million in the prior year quarter.

Headline financials

Total Revenue

$166M

Previous: $140M+18.8%
EPS (adj)

$0.27

Previous: $0.07+285.7%
Consolidated Adjusted EBITDA

$17.5M

No prior period
Adj EBITDA Margin

10.5%

No prior period
Capital Expenditures

-$5.2M

Previous: $4.59M-213.3%
Net Income

-$1.44M

Previous: -$10.8M+86.7%
Operating Income

-$8.91M

Previous: -$8.29M-7.5%
Gross Profit

$51.9M

Previous: $48.7M+6.5%
Stock-Based Comp

$11.7M

Previous: $10.9M+6.8%

Revenue & EPS history

Montrose · Revenue · Quarterly

$166M

Q4 2023+18.8%vs Q4 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Montrose · $111M total across 2 segments · Q3 2023

  • Remediation and Reuse
    $60.5M
  • Measurement and Analysis
    $50.5M

Forward guidance

The Company is initiating its full year 2024 outlook for Revenue to be in the range of $675 million to $725 million. Consolidated Adjusted EBITDA is expected to be in the range of $90 million to $95 million.

Tailwinds

  • Revenue to be in the range of $675 million to $725 million.
  • Consolidated Adjusted EBITDA is expected to be in the range of $90 million to $95 million.
  • The midpoints of the ranges incorporate an expectation of low double digit organic revenue growth
  • Continued year-on-year Consolidated Adjusted EBITDA margin expansion.
  • Revenue and Consolidated Adjusted EBITDA outlook does not include any benefit from future acquisitions.

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 Q4 2023

Historical avgQ4 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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