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 Perma-Fix (NASDAQ:PESI) 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 8 waste management stocks we track reported a weak Q2. As a group, revenues missed analysts’ consensus estimates by 1.9%.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. Thankfully, waste management stocks have been resilient with share prices up 5.2% on average since the latest earnings results.
Perma-Fix (NASDAQ:PESI) Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ:PESI) provides environmental waste treatment services.
Perma-Fix reported revenues of $13.99 million, down 44.1% year on year. This print fell short of analysts’ expectations by 12%. Overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
Mark Duff, President and CEO of the Company, commented, “Our second quarter performance remained weak due to ongoing government delays in waste shipments, awarding new task orders and procuring other projects. We also experienced an extended equipment failure at one of our facilities that adversely impacted our revenue and overall performance. Nevertheless, we believe that these are temporary issues. We are encouraged by the trends heading into Q3, driven by our increasing backlog and bidding activities along with progress we believe is being made on our long-term growth initiatives.”
Perma-Fix delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 7.7% since reporting and currently trades at $11.
Is now the time to buy Perma-Fix? Find out by reading the original article on StockStory, it’s free. Best Q2: 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 $1.55 billion, up 11.1% year on year, outperforming analysts’ expectations by 1.5%. It was a very strong quarter for the company with an impressive beat of analysts’ operating margin estimates and a decent beat of analysts’ earnings estimates.
Clean Harbors pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.6% since reporting. It currently trades at $245.90.
Quest Resource (NASDAQ:QRHC)Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ:QRHC) is a provider of waste and recycling services.
Quest Resource reported revenues of $73.15 million, down 1.8% year on year, falling short of analysts’ expectations by 4.6%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
Interestingly, the stock is up 6% since the results and currently trades at $8.84.
Republic Services (NYSE:RSG)Republic (NYSE:RSG) provides waste management services for residences, companies, and municipalities.
Republic Services reported revenues of $4.05 billion, up 8.6% year on year, in line with analysts’ expectations. More broadly, it was a mixed quarter for the company with a solid beat of analysts’ operating margin estimates but a miss of analysts’ volume estimates.
Republic Services had the weakest full-year guidance update among its peers. The stock is up 4.3% since reporting and currently trades at $208.21.
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 $377.2 million, up 30.2% year on year, surpassing analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter for the company with full-year revenue guidance exceeding analysts’ expectations but a miss of analysts’ operating margin estimates.
Casella Waste Systems scored the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 5.4% since reporting and currently trades at $107.86.
This content was originally published on Stock Story
