Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Clean Harbors (NYSE:CLH) and the best and worst performers in the waste management industry.
Waste management companies can possess licenses permitting them to handle hazardous materials. Furthermore, many services are performed through contracts and statutorily mandated, non-discretionary, or recurring, leading to more predictable revenue streams. However, regulation can be a headwind, rendering existing services obsolete or forcing companies to invest precious capital to comply with new, more environmentally-friendly rules. Lastly, waste management companies are at the whim of economic cycles. Interest rates, for example, can greatly impact industrial production or commercial projects that create waste and byproducts.
The 5 waste management stocks we track reported an ok Q1; on average, revenues were in line with analyst consensus estimates. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but waste management stocks have performed well, with the share prices up 13% on average since the previous earnings results.
Best Q1: Clean Harbors (NYSE:CLH) Established in 1980, Clean Harbors (NYSE:CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.
Clean Harbors reported revenues of $1.38 billion, up 5.3% year on year, exceeding analysts' expectations by 3%. Overall, it was a very strong quarter for the company with a solid beat of analysts' organic revenue estimates and a decent beat of analysts' earnings estimates.
“Strong demand for our services resulted in a better-than-expected performance in the first quarter,” said Mike Battles, Co-Chief Executive Officer.
Clean Harbors scored the biggest analyst estimates beat of the whole group. The stock is up 24.6% since reporting and currently trades at $236.16.
Is now the time to buy Clean Harbors? Find out by reading the original article on StockStory, it's free. Waste Management (NYSE:WM)Headquartered in Houston, Waste Management (NYSE:WM) is a provider of comprehensive waste management services in North America.
Waste Management reported revenues of $5.16 billion, up 5.5% year on year, falling short of analysts' expectations by 1.2%. It performed better than its peers, but it was unfortunately an ok quarter for the company with a solid beat of analysts' earnings estimates.
The market seems happy with the results as the stock is up 5.3% since reporting. It currently trades at $221.59.
Weakest Q1: Stericycle (NASDAQ:SRCL)Founded in 1989, Stericycle (NASDAQ:SRCL) provides waste disposal and sensitive information destruction services to healthcare organizations and other businesses.
Stericycle reported revenues of $664.9 million, down 2.8% year on year, falling short of analysts' expectations by 1.7%. It was a weak quarter for the company with a miss of analysts' organic revenue estimates.
Stericycle had the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 16.6% since the results and currently trades at $58.13.
Republic Services (NYSE:RSG)Republic (NYSE:RSG) provides waste management services for residences, companies, and municipalities.
Republic Services reported revenues of $3.86 billion, up 7.8% year on year, in line with analysts' expectations. Zooming out, it was a slower quarter for the company with a miss of analysts' volume estimates.
The stock is up 6.5% since reporting and currently trades at $204.18.
Casella Waste Systems (NASDAQ:CWST)Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ:CWST) offers waste management services for businesses, residents, and the government.
Casella Waste Systems reported revenues of $341 million, up 29.9% year on year, in line with analysts' expectations. Zooming out, it was an ok quarter for the company with an impressive beat of analysts' earnings estimates but a miss of analysts' organic revenue estimates.
Casella Waste Systems pulled off the fastest revenue growth among its peers. The stock is up 12% since reporting and currently trades at $105.38.
This content was originally published on Stock Story
