U.S. Ecology (ECOL) Misses Q2 EPS by 5c, Affirms Outlook

U.S. Ecology (NASDAQ: ECOL) reported Q2 EPS of $0.40, $0.05 worse than the analyst estimate of $0.45. Revenue for the quarter came in at $139.7 million versus the consensus estimate of $149 million.

2015 Outlook

"Business conditions for our core environmental and field services businesses remain very strong," added Feeler. "With a solid shipment schedule of projects already won and a solid pipeline of opportunities, we expect our environmental services business to end the year on a strong note. Our field services business continues to have success in the market place with first half contract wins that are expected to benefit our second half results. As a result, we are expecting this increased business activity to result in a very strong third quarter and solid fourth quarter.

We continue to make good progress on integration activities, working on information systems and other fundamental back office activities that will continue through 2016. Additionally, we are focused on identifying non-core assets that do not add value to the environmental and field services businesses. The planned divestiture of Allstate is a major step to streamlining our operations, allowing us to concentrate on growing our core environmental services business."

As a result of the planned divestiture of Allstate in the third or fourth quarter, we expect to report this business as a discontinued operation beginning with our third quarter financial results. Using this method of reporting, our originally issued adjusted EBITDA guidance for the continuing operations (excluding the Allstate business) would have ranged from $128 to $132 million and, today, we reaffirm this adjusted EBITDA range. This is consistent with the Company's previously issued 2015 adjusted EBITDA guidance of $137 to $143 million that included a full year of Allstate operations.

We are also reaffirming our previously issued full year adjusted earnings per share guidance of $1.76 to $1.92 per diluted share and currently believe we will now end the year in the upper end of that range. We expect the Allstate divestiture to be accretive to diluted earnings per share from continuing operations, after adjusting for interest expense savings as a result of expected debt repayment with the cash proceeds from the sale. All guidance information excludes business development expenses, foreign currency gains and losses, goodwill impairment charges and other non-recurring, noncash charges.

For earnings history and earnings-related data on U.S. Ecology (ECOL) click here.

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