Roth Capital Expects Weaker Earnings for CECO Environmental

Key Points

• Roth Capital has reduced its FY2025 earnings per share (EPS) estimate for CECO Environmental Corp. from $1.03 to $1.01, contrasting with the current consensus estimate of $0.67 per share.
• Despite the downgrade, CECO Environmental maintains a consensus rating of "Buy" from five analysts, with price targets ranging from $42.40 to $55.00.
• CECO Environmental recently reported earnings of $0.24 per share for the quarter, surpassing expectations, with a revenue of $185.39 million, exceeding the forecast of $178.66 million.

CECO Environmental Corp. (NASDAQ:CECO - Free Report) - Equities research analysts at Roth Capital dropped their FY2025 earnings per share (EPS) estimates for shares of CECO Environmental in a research note issued on Wednesday, July 30th. Roth Capital analyst G. Sweeney now expects that the company will post earnings of $1.01 per share for the year, down from their prior estimate of $1.03. The consensus estimate for CECO Environmental's current full-year earnings is $0.67 per share.

A number of other research analysts have also commented on CECO. Lake Street Capital reaffirmed a "buy" rating and set a $56.00 price target on shares of CECO Environmental in a research report on Wednesday, July 30th. Citigroup reissued an "outperform" rating on shares of CECO Environmental in a report on Wednesday. Needham & Company LLC boosted their target price on CECO Environmental from $34.00 to $44.00 and gave the stock a "buy" rating in a report on Tuesday, July 29th. HC Wainwright increased their price objective on CECO Environmental from $33.00 to $55.00 and gave the company a "buy" rating in a research report on Wednesday, July 30th. Finally, Northland Securities set a $51.00 price target on CECO Environmental in a research note on Wednesday. Six analysts have rated the stock with a buy rating, According to MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $49.20.

CECO Environmental Price Performance

Shares of CECO traded down $1.25 during midday trading on Thursday, reaching $43.89. The stock had a trading volume of 393,138 shares, compared to its average volume of 299,782. CECO Environmental has a 12-month low of $17.57 and a 12-month high of $46.06. The company has a current ratio of 1.34, a quick ratio of 1.13 and a debt-to-equity ratio of 0.78. The company's 50-day moving average is $30.62 and its 200 day moving average is $26.55. The company has a market capitalization of $1.55 billion, a price-to-earnings ratio of 30.76, a price-to-earnings-growth ratio of 2.63 and a beta of 1.39.

CECO Environmental (NASDAQ:CECO - Get Free Report) last posted its earnings results on Tuesday, July 29th. The company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.20 by $0.04. The business had revenue of $185.39 million during the quarter, compared to analysts' expectations of $178.66 million. CECO Environmental had a return on equity of 10.00% and a net margin of 7.99%.

Institutional Trading of CECO Environmental

Hedge funds and other institutional investors have recently made changes to their positions in the company. Farther Finance Advisors LLC grew its stake in shares of CECO Environmental by 224.7% during the second quarter. Farther Finance Advisors LLC now owns 1,445 shares of the company's stock worth $41,000 after purchasing an additional 1,000 shares in the last quarter. Mackenzie Financial Corp acquired a new position in shares of CECO Environmental during the fourth quarter worth $56,000. Heck Capital Advisors LLC acquired a new position in shares of CECO Environmental during the fourth quarter worth $74,000. Caption Management LLC purchased a new stake in CECO Environmental in the first quarter valued at $182,000. Finally, XTX Topco Ltd purchased a new stake in CECO Environmental in the first quarter valued at $217,000. Institutional investors and hedge funds own 68.08% of the company's stock.

Insider Buying and Selling at CECO Environmental

In other CECO Environmental news, Director Jason Dezwirek sold 30,000 shares of the company's stock in a transaction on Thursday, July 31st. The shares were sold at an average price of $43.54, for a total value of $1,306,200.00. Following the sale, the director directly owned 200,000 shares of the company's stock, valued at approximately $8,708,000. This represents a 13.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Claudio A. Mannarino sold 20,000 shares of the stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $41.51, for a total transaction of $830,200.00. Following the sale, the director directly owned 77,589 shares in the company, valued at approximately $3,220,719.39. The trade was a 20.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 120,000 shares of company stock worth $5,128,900. 16.90% of the stock is owned by corporate insiders.

CECO Environmental Company Profile

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions worldwide. It operates in two segments: Engineered Systems and Industrial Process Solutions. The company engineers, designs, manufactures, and installs non-metallic expansion joints and flow control products, including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves; membrane-based industrial water and wastewater treatment systems; and provides dust and fume extraction solutions comprising consultation, design, manufacturing, installation, and service, as well as water and wastewater treatment solutions.