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

Perma-Fix Environmental Services (NASDAQ:PESI) announced its earnings results on Thursday. The industrial products company reported ($0.16) EPS for the quarter, topping analysts’ consensus estimates of ($0.21) by $0.05, Zacks reports. Perma-Fix Environmental Services had a negative return on equity of 35.46% and a negative net margin of 37.04%. The company had revenue of $17.95 million for the quarter, compared to analysts’ expectations 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 Price Performance

Shares of PESI stock traded up $0.03 on Thursday, hitting $12.84. 555,807 shares of the stock traded hands, compared to its average volume of 321,310. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.67 and a quick ratio of 1.58. Perma-Fix Environmental Services has a 52 week low of $8.58 and a 52 week high of $21.32. The firm has a 50 day simple moving average of $15.36 and a two-hundred day simple moving average of $13.87. The firm has a market cap of $272.46 million, a price-to-earnings ratio of -11.36 and a beta of 0.59.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on PESI. Weiss Ratings restated a “sell (d-)” rating on shares of Perma-Fix Environmental Services in a research report on Tuesday, September 22nd. Zacks Research raised Perma-Fix Environmental Services to a “hold” rating in a research report on Friday, October 2nd. Finally, Wall Street Zen downgraded Perma-Fix Environmental Services from a “sell” rating to a “strong sell” rating in a research note on Saturday, October 3rd. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Perma-Fix Environmental Services presently has a consensus 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.