Specialty engineering company Ceco Environmental (NASDAQ: CECO) had a fine Hump Day on the stock exchange. Its share price performance edged past that of the benchmark S&P 500 index, rising by 0.6% against the index’s marginal (0.1%) gain. Investors were pleased with their company’s latest business update.
Before market open, Ceco announced that it closed its latest acquisition. As of Aug. 23, it has been the owner of Kemco Systems, a designer and maker of water recycling and energy conservation products for industrial uses.
With Kemco in its portfolio, Ceco adjusted its guidance for annual revenue and profitability. It believes the former metric will total at least $525 million for the entirety of 2023, which would shake out to growth of 24% over 2022. It also provided a new forecast for earnings before interest, taxes, depreciation, and amortization (EBITDA). This should come in at a minimum of $55 million for growth of roughly 30%.
Ceco has been doing solid business lately, with fundamentals that have shown significant growth. With this as a foundation, it’s been on an acquisition streak — the Kemco deal is its third notable asset buy so far this year.
In its press release on Kemco, Ceco wrote that owning it “enhances Ceco’s North American presence, extending the company’s industrial water and wastewater treatment applications reach, adding new energy conservation and water recycling solutions, and expanding the addressable market into new high-value food processing, commercial laundry, and ready-mix concrete customer segments and end markets.”
10 stocks we like better than CECO Environmental
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and CECO Environmental wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
*Stock Advisor returns as of September 11, 2023
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]