Puzzling Price Reaction: CECO Environmental Corp. (NASDAQ: CECE)

On 14 Jan 2020, CECO Environmental Corp. (NASDAQ: CECE) spotted trading -17.48% off 52-week high price. On the other end, the stock has been noted 24.92% away from the low price over the last 52-weeks. The stock changed 2.65% to recent value of $8.12. The stock transacted 83570 shares during most recent day however it has an average volume of 65.93K shares. The company has 35.33M of outstanding shares and 30.63M shares were floated in the market.

CECO Environmental Corp. (CECE) recently stated its financial results for the third quarter of 2019.

THIRD QUARTER RESULTS

Revenue in the third quarter of 2019 was $85.3M as contrast to $88.3M in the prior-year period. Not Including revenue of $1.6M attributable to the divested business in 2018, organic revenues reduced 1.6%.

Operating income was $4.1M for the third quarter of 2019, contrast with an operating loss of $10.4M in the prior-year period. The operating loss in 2018 included a $15.1M non-cash impairment charge related to the sale of our Zhongli business. Non-GAAP operating income was $7.0M for the third quarter of 2019 (8.2% margin), contrast with $6.5M in the prior-year period (7.4% margin).

Net income was $1.9M for the third quarter of 2019, contrast with net loss of $12.9M in the prior-year period. Net income on a non-GAAP basis was $4.2M for the third quarter of 2019, contrast with $3.5M in the prior-year period.

Net income per diluted share was $0.05 for the third quarter of 2019, contrast with net loss per diluted share of $(0.37) in the prior-year period. Non-GAAP net income per diluted share was $0.12 for the third quarter of 2019, contrast with $0.10 for the prior-year period.

Cash and cash equivalents were $29.0M and bank debt was $69.4M as of September 30, 2019, contrast with $43.7M and $76.1M, respectively, as of December 31, 2018.

BACKLOG AND BOOKINGS

Total backlog at September 30, 2019 was $237.8M as contrast with $182.1M on December 31, 2018 and $211.4M on September 30, 2018. As of September 30, 2018, $7.4M of backlog was attributable to the divested businesses. Adjusted for divestitures, backlog increased $33.8M from third quarter 2018 to third quarter 2019, or 16.6%.

Bookings were $115.7M for the third quarter of 2019, contrast with $97.5M in the prior-year period. Not Including bookings of $0.4M attributable to the businesses divested in 2018, 2019 organic bookings increased $18.6M, or 19.2%. Bookings were $316.0M for the first nine months of 2019 contrast with $292.9M for the prior-year period. Not Including the impact of divestitures, bookings increased $29.5M during the first nine months of 2019, or 10.3%.

Its earnings per share (EPS) expected to touch remained -516.50% for this year while earning per share for the next 5-years is expected to reach at 15.00%. CECE has a gross margin of 33.00% and an operating margin of 4.80% while its profit margin remained 3.00% for the last 12 months.   According to the most recent quarter its current ratio was 1.5 that represents company’s ability to meet its current financial obligations. The price moved ahead of 3.78% from the mean of 20 days, 3.84% from mean of 50 days SMA and performed 1.60% from mean of 200 days price. Company’s performance for the week was 5.59%, -0.49% for month and YTD performance remained 6.01%.

 

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