CECO Environmental Q2 revenue slightly beats on increase in orders, backlog
CECO•Analyst view
The current average analyst rating on the shares is "buy," with 8 "strong buy" or "buy" ratings, no "hold" ratings and no "sell" or "strong sell" ratings.
The average consensus recommendation for the environmental services and equipment peer group is "buy."
Wall Street's median 12-month price target for CECO Environmental Corp. is $110.00, about 55.1% above its Aug. 7 closing price of $70.92.
The stock recently traded at 27 times the next 12-month earnings versus a P/E of 40 three months ago.
Q2 results beat on revenue and earnings
CECO Environmental said second-quarter revenue grew 54% year over year, slightly beating analyst expectations.
Adjusted EPS for the quarter also beat analyst expectations.
Key Details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Slight Beat* | $284.96 mln | $282.22 mln (7 Analysts) |
| Q2 Adjusted EPS | Beat | $0.47 | $0.33 (6 Analysts) |
| Q2 Adjusted Net Income | Beat | $21.50 mln | $17.80 mln (5 Analysts) |
| Q2 Adjusted EBITDA | Beat | $40.20 mln | $38.73 mln (7 Analysts) |
| Q2 Adjusted Operating Income | $32.10 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Orders, backlog and Thermon integration drove results
The company said orders rose 191% and backlog increased 164%, reflecting strong demand across global end markets.
