CECO Environmental Corp. (CECE) won several new orders across the world worth $15.6 million. These new orders came in primarily from natural gas, traditional utilities, petrochemicals, refineries, pharmaceutical, automotive, municipalities and metals and mining.
The air pollution control and industrial ventilation products enjoy a multi-billion dollar market that is still growing at a rapid pace. The demand for clean air, water and an environment that is free from industrial pollutants further help in the growth of these products. More and more businesses are paying serious attention to environmental protection, as a result of the increasing requirement to comply with stringent environmental regulations becoming mandatory both in the U.S. and globally.
Given the strong growth rate of the pollution control market, CECO Environmental completed two strategic acquisitions in fiscal 2013 to further strengthen itself in the product recovery, pollution control and fluid handling and filtration solutions across multiple diversified end markets. This apart, the company also has a strong presence in the natural gas turbine exhaust systems and silencer applications.
Prior to this, in Dec 2013, the company had received a similar bulk order valued at $13 million, primarily from alternative fuels, oil refineries, automotive, energy, municipalities and metals located in the U.S., Mexico and the Middle East.
In the last-reported third quarter of 2013, the company reported earnings of 24 cents, which were 9% above the Zacks Consensus Estimate and were up 26.3% year over year. Revenues for the quarter were also up 50.4% to $49.8 million, primarily driven by acquisitions. The company expects to report its fourth-quarter results on Feb 27, 2014.
CECO Environmental is a leading provider of air pollution control technology globally. Currently, the company has a Zacks Rank #3 (Hold). Other stocks in the industry that are worth considering at the moment are Sharps Compliance Corp (SMED), Pure Cycle Corp. (PCYO) and Tetra Tech Inc. (TTEK). Sharps Compliance carries a Zacks Rank #1 (Strong Buy) while Pure Cycle and Tetra Tech carry a Zacks Rank #2 (Buy).