New Forecasts: Here's What Analysts Think The Future Holds For Quest Resource Holding Corporation (NASDAQ:QRHC)

By
Simply Wall St
Published
August 21, 2021
NasdaqCM:QRHC
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Quest Resource Holding Corporation (NASDAQ:QRHC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investor sentiment seems to be improving too, with the share price up 8.4% to US$6.59 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the latest consensus from Quest Resource Holding's twin analysts is for revenues of US$148m in 2021, which would reflect a notable 20% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 72% to US$0.16. Prior to this update, the analysts had been forecasting revenues of US$125m and earnings per share (EPS) of US$0.095 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Quest Resource Holding

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NasdaqCM:QRHC Earnings and Revenue Growth August 21st 2021

It will come as no surprise to learn that the analysts have increased their price target for Quest Resource Holding 48% to US$10.00 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Quest Resource Holding's past performance and to peers in the same industry. For example, we noticed that Quest Resource Holding's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 44% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 15% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 6.9% per year. Not only are Quest Resource Holding's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Quest Resource Holding.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.