Why did QRHC miss EPS forecasts in Q3?

Quest Resource Holding Corp (QRHC) missed EPS forecasts in Q3 due to a combination of factors:

1. **Revenue Mix and Cost Shift**: There was a shift in revenue mix and higher costs of services, which primarily contributed to the decrease in gross profit dollars year-over-year. This indicates that while the company may have been generating revenue, the profitability of that revenue was lower than expected due to increased operational costs.
2. **Onboarding New Clients and System Implementation**: The company faced temporary cost increases due to onboarding new clients and implementing a new vendor management system. These one-time costs had a significant impact on the net income, making it difficult to meet EPS expectations.

In summary, the miss in EPS forecasts was likely a result of a combination of factors including revenue mix and cost shift, and onboarding new clients and system implementation.

|code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|QRHC|QRHC.O|Quest Resource|2023 Q4|-0.03||186|
|QRHC|QRHC.O|Quest Resource|2024 Q1|0.08|-0.03|186|
|QRHC|QRHC.O|Quest Resource|2024 Q2|-0.06|-0.07|186|
|QRHC|QRHC.O|Quest Resource|2024 Q3|-0.05|-0.16|186|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|QRHC|QRHC.O|Quest Resource|2023 Q4|11.387485760829746|6.9341577E7|186|
|QRHC|QRHC.O|Quest Resource|2024 Q1|-1.9731600781032355|7.2651321E7|186|
|QRHC|QRHC.O|Quest Resource|2024 Q2|-1.8148887150869035|7.3145252E7|186|
|QRHC|QRHC.O|Quest Resource|2024 Q3|3.3226494550796106|7.2765415E7|186|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|QRHC|QRHC.O|Quest Resource|2023 Q4|29.987269997463617|-2329724|186|
|QRHC|QRHC.O|Quest Resource|2024 Q1|67.62308101615916|-655326|186|
|QRHC|QRHC.O|Quest Resource|2024 Q2|-70.81439823321276|-1514408|186|
|QRHC|QRHC.O|Quest Resource|2024 Q3|-65.09746703715227|-3385558|186|