CECO Environmental Stock Slips On Missing Q3 Estimates

CECO Environmental Corp CECE reported third-quarter revenue of $79.97 million, an increase of 3.3% year-over-year, missing the consensus of $81.3 million.
Adjusted EPS decreased to $0.01 from $0.11 in 3Q20, missing the consensus of $0.11
The gross margin contracted by 360 bps to 28.4%. The adjusted operating income decreased to $1.8 million from $5.6 million a year ago, while the corresponding margin contracted by 530 bps to 2.3%.
Adjusted EBITDA was $3.5 million, compared to $7.3 million in 3Q20, and margin contracted by 505 bps to 4.4%.
Bookings improved 39% to $92.6 million, compared with $66.8 million last year. The backlog was $219.1 million, compared with $183.1 million as of December 31, 2020.
Bank Debt of $67 million, compared with $74 million as of December 31, 2020. The company held $34.5 million in cash and equivalents as of September 30, 2021.
The company repurchased ~521,000 shares of common stock at $3.7 million during the quarter.
"Unfortunately, in the third quarter, we could not overcome challenges associated with lower-margin projects booked in late 2020, various short-term execution issues associated with supply chain and logistics costs, customer delays, and labor shortages," said CEO Todd Gleason.
"As the fourth quarter continues to progress, we are confident we will achieve improved volumes and margins, which we expect to result in revenues up double-digits and adjusted EBITDA to more than double sequentially from the third quarter," Gleason added.
CECO also announced that Richard F. Wallman, former CFO of Honeywell International Inc HON, has joined the company's board of directors.
Price Action: CECE shares are trading lower by 3.62% at $7.23 on the last check Monday.

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CECO Environmental Stock Slips On Missing Q3 Estimates

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