What Happened?
Shares of environmental services provider Montrose (NYSE: MEG) jumped 14.8% in the morning session after the company reported fourth-quarter 2025 results that topped Wall Street estimates and provided an upbeat forecast for the upcoming year. For the fourth quarter, Montrose posted revenue of $193.3 million, a 2.2% increase year-on-year, which surpassed analysts' expectations. The company's profitability was a significant highlight, with non-GAAP earnings of $0.35 per share, soundly beating the consensus estimate of $0.19. Looking ahead, Montrose issued full-year revenue guidance with a midpoint of $870 million, which was above analyst forecasts. The company also projected 2026 adjusted EBITDA of $127.5 million at the midpoint, also ahead of expectations. The strong quarter and optimistic outlook signaled healthy demand for its environmental services, boosting investor confidence.
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What Is The Market Telling Us
Montrose’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. But moves this big are rare even for Montrose and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 20 days ago when the stock gained 5% on the news that the broader market rebounded from a tech-driven sell-off, with investors taking the opportunity to buy stocks at lower prices. This rally was fueled by a recovery in technology stocks and a significant bounce in Bitcoin, which stabilized after losing over half its value from its October peak. Investor sentiment was also lifted by a surprising improvement in U.S. consumer sentiment and the realization that massive AI-related capital expenditure, such as Amazon's planned $200 billion, directly benefits chipmakers like Nvidia and Broadcom. These "pick-and-shovel" winners jumped as much as 7%, helping the S&P 500 edge back into positive territory for 2026. The highlight of the day was the Dow Jones Industrial Average, which surged and crossed the historic 50,000 threshold for the first time.
Montrose is up 13% since the beginning of the year, but at $28.11 per share, it is still trading 9.5% below its 52-week high of $31.06 from August 2025. Investors who bought $1,000 worth of Montrose’s shares 5 years ago would now be looking at an investment worth $575.10.
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