Northland analyst Owen Rickert has adjusted the price target for Quest Resource (QRHC, Financial), lowering it from $6.50 to $5.50 while maintaining an Outperform rating. The first quarter results were largely as expected, with acknowledged temporary cost challenges. The decrease in revenue was primarily due to reduced volumes, which stemmed from client attrition and decreased activities among some larger clients.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Quest Resource Holding Corp (QRHC, Financial) is $6.83 with a high estimate of $7.00 and a low estimate of $6.50. The average target implies an upside of 176.65% from the current price of $2.47. More detailed estimate data can be found on the Quest Resource Holding Corp (QRHC) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Quest Resource Holding Corp's (QRHC, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Quest Resource Holding Corp (QRHC, Financial) in one year is $7.74, suggesting a upside of 213.36% from the current price of $2.47. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Quest Resource Holding Corp (QRHC) Summary page.
QRHC Key Business Developments
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Quest Resource Holding Corp (QRHC, Financial) completed the sale of a non-core part of its business, generating $5 million in cash and reducing debt.
- The company has implemented cost reduction actions, reducing SG&A costs by $3 million on an annualized basis.
- New leadership appointments, including a new CEO and Senior Vice President of Operations, aim to strengthen the management team.
- QRHC is focused on generating cash, improving profitability, lowering debt, and increasing operating efficiency.
- The company has a robust sales pipeline and is actively working on expanding its client base and increasing its share of wallet with existing customers.
Negative Points
- Revenue for the first quarter decreased by 6% year-over-year, primarily due to client attrition and lower volumes at larger clients.
- Gross profit dollars decreased by 22% from the previous year, affected by customer attrition, lower volumes, and a shift in revenue mix.
- SG&A costs increased by $1.6 million compared to the previous year, partly due to separation costs and bonus accruals.
- The company experienced a $4.4 million loss related to the sale of a non-core business and a $1.7 million adjustment to intangible assets.
- Days Sales Outstanding (DSO) remain elevated, impacting cash flow, although improvements are expected by the end of the second quarter.
