What caused QRHC's EPS decline in Q2 2024?

The EPS of Quest Resource Holding Co. (QRHC) declined in Q2 2024 due to a combination of factors:

1. Revenue Shortfall: Although QRHC reported revenue of $72.65 million for the quarter, this fell slightly short of the consensus estimate of $72.30 million. This shortfall, although modest, could contribute to the EPS decline when compared to the cost base.
2. Net Margin Pressure: QRHC faced a negative net margin of 2.06% for the quarter. Negative net margins indicate that the company's costs exceeded its revenues, leading to a decline in profitability and, consequently, EPS.
3. Interest and Financing Costs: The company's debt-to-equity ratio stood at 1.03, indicating a reliance on debt financing. High-interest and financing costs can erode profitability, impacting EPS when compared to the previous quarter or year.
4. Stock Price Performance: QRHC's stock price traded below its 50-day moving average of $9.37, reaching a low of $8.63. This decline in stock price can reflect market concerns about the company's financial health or future growth prospects, which may indirectly affect EPS by influencing the company's cost of capital and market valuation.

In summary, QRHC's EPS decline in Q2 2024 was likely a result of a combination of revenue shortfall, negative net margin, high financing costs, and stock price decline.