Perma-Fix Environmental Services (NASDAQ:PESI) Releases Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• Perma-Fix beat quarterly estimates: It reported an EPS loss of $0.16, $0.05 better than expected, and revenue of $17.95 million versus analysts’ $14.90 million estimate.
• Revenue rose 39% sequentially to about $17.9 million and gross profit returned to positive territory, but the company’s net loss widened to $3.5 million from $1.8 million a year earlier amid processing delays, unfavorable mix and higher facility costs.
• Backlog and pricing offer potential support: Treatment backlog reached $19.6 million, about 65% above year-end, while price increases were fully deployed in October. Nuclear services revenue also grew 46% year over year, though the company reported significant operating cash use in the first nine months.

Perma-Fix Environmental Services (NASDAQ:PESI - Get Free Report) issued its earnings results on Thursday. The industrial products company reported ($0.16) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.21) by $0.05, Zacks reports. Perma-Fix Environmental Services had a negative net margin of 37.04% and a negative return on equity of 35.46%. The company had revenue of $17.95 million for the quarter, compared to analyst estimates of $14.90 million.

Here are the key takeaways from Perma-Fix Environmental Services' conference call:

• Third-quarter revenue rose 39% sequentially to $17.9 million and consolidated gross profit returned to positive territory, but the company reported a $3.5 million net loss, wider than the $1.8 million loss a year earlier. Treatment results were pressured by delayed waste processing, a less favorable mix, and higher facility costs.
• Treatment backlog increased to $19.6 million, up about 65% from year-end. Price increases began taking effect late in the quarter and were fully deployed in October; management expects them to support treatment revenue and margins.
• Perma-Fix reported growing DFLAW waste receipts and holds one of three Hanford master subcontracts, positioning it to compete for future tank-waste work. The opportunity remains subject to DOE production ramps and regulatory approvals, and the company said Ecology’s review could delay East Area receipts by several months.
• Nuclear services revenue grew 46% year over year to $6.3 million, and the segment generated about $200,000 in operating income versus a loss a year earlier. Management said the backlog extends through the second quarter of 2027.
• The company used $10.8 million in cash from continuing operations during the first nine months, though its May equity offering helped lift quarter-end cash to $14.7 million. Management said it does not currently expect another equity raise, while the CFO said the company expects to emerge from its going-concern disclosure as operating performance improves.

Perma-Fix Environmental Services Trading Up 0.2%

PESI traded up $0.03 during midday trading on Thursday, reaching $12.84. 555,807 shares of the company were exchanged, compared to its average volume of 321,310. Perma-Fix Environmental Services has a one year low of $8.58 and a one year high of $21.32. The stock's 50-day simple moving average is $15.36 and its 200 day simple moving average is $13.87. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.67 and a quick ratio of 1.58.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on PESI shares. Weiss Ratings restated a "sell (d-)" rating on shares of Perma-Fix Environmental Services in a report on Tuesday, September 22nd. Wall Street Zen lowered shares of Perma-Fix Environmental Services from a "sell" rating to a "strong sell" rating in a report on Saturday, October 3rd. Finally, Zacks Research raised shares of Perma-Fix Environmental Services to a "hold" rating in a report on Friday, October 2nd. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Perma-Fix Environmental Services currently has an average rating of "Reduce".

Perma-Fix Environmental Services Company Profile

Perma-Fix Environmental Services, Inc provides treatment, processing and disposal services for radioactive, mixed and hazardous waste. The company serves customers that generate waste through nuclear energy production, government and defense programs, research, medical activities and other industrial operations.

Its services include the treatment of low-level radioactive waste and mixed waste, which contains both radioactive and hazardous components. Perma-Fix uses specialized technologies and licensed treatment facilities to process waste streams, reduce their volume or hazardous characteristics, and prepare them for compliant disposal.

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