U.S. Ecology (ECOL) Misses Q2 EPS by 6c, Comments on Outlook

U.S. Ecology (NASDAQ: ECOL) reported Q2 EPS of ($0.08), $0.06 worse than the analyst estimate of ($0.02). Revenue for the quarter came in at $213.9 million versus the consensus estimate of $221.39 million.

2020 BUSINESS OUTLOOK:

While US Ecology’s outlook has improved across the company, business continues to be negatively impacted by the COVID-19 pandemic. Given the continued unpredictability pertaining to the pandemic’s impact on the general industrial economy and customer behavior, the range of feasible financial outcomes remains too wide to warrant the reinstatement of formal 2020 guidance.

We believe that the second quarter of 2020 will be the lowest quarter of the year in terms of total revenue, adjusted EBITDA and adjusted earnings (loss) per share. While we are seeing positive signs of recovery in our core waste and services business, we expect continued headwinds in our energy waste disposal services business. However, through our decisive actions and business plan adjustments, we expect to operate that business unit at breakeven levels on an adjusted EBITDA basis for the full year of 2020.

The Company continues to monitor current business levels, prudently adjusting spending and cost control actions to mitigate the impact the COVID-19 pandemic has on our business activities. This includes continuing to adjust capital spending plans, cost control initiatives such as hiring practices and other work force actions. As a result, we expect to generate positive free cash flow for 2020 at or above 2019 levels.

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

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