A fall in COVID-19 testing ate into results from environmental services company Montrose Environmental Group (NYSE: MEG), causing the company to miss expectations. Investors were apparently caught off guard, sending shares of Montrose down about 25% in midday trading Wednesday.

Montrose provides environmental testing, lab services, remediation, and consulting to a range of industries. The company lost $0.50 per share on revenue of $139.5 million in the last three months of 2022, worse than the $0.23 loss per share on $141 million in revenue that analysts had expected.

The culprit was Montrose's CTEH environmental health business, and specifically COVID-related revenue, which was down by about $125 million for the year compared to 2021. Strip out the COVID business and overall Montrose revenue grew by 26%, with water treatment and greenhouse-gas measurement and mitigation leading the way.

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Source Fool.com