As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the waste management industry, including Waste Connections (NYSE: WCN) and its peers.
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 9 waste management stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 1.2%.
While some waste management stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.1% since the latest earnings results.
Waste Connections (NYSE: WCN)
Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE: WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.
Waste Connections reported revenues of $2.26 billion, up 11% year on year. This print exceeded analysts’ expectations by 0.8%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
The stock is up 2.6% since reporting and currently trades at $194.59.
Is now the time to buy Waste Connections? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $427.5 million, up 18.9% year on year, outperforming analysts’ expectations by 2.3%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Casella Waste Systems pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 4.7% since reporting. It currently trades at $111.79.
Is now the time to buy Casella Waste Systems? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Perma-Fix (NASDAQ: PESI)
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ: PESI) provides environmental waste treatment services.
Perma-Fix reported revenues of $14.7 million, down 35.3% year on year, falling short of analysts’ expectations by 6.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Perma-Fix delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 37.9% since the results and currently trades at $9.99.
Read our full analysis of Perma-Fix’s results here.
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 $5.89 billion, up 13% year on year. This number surpassed analysts’ expectations by 0.9%. It was a decent quarter for the company: Waste Management provided optimistic full-year EBITDA guidance, which exceeded analysts’ expectations despite in line full-year revenue guidance.
The stock is up 10.8% since reporting and currently trades at $232.43.
Read our full, actionable report on Waste Management here, it’s free.
Montrose (NYSE: MEG)
Founded to protect a tree-lined two-lane road, Montrose (NYSE: MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.
Montrose reported revenues of $189.1 million, up 14.1% year on year. This result beat analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also produced a solid beat of analysts’ EPS estimates but a significant miss of analysts’ organic revenue estimates.
Montrose had the weakest full-year guidance update among its peers. The stock is down 18.5% since reporting and currently trades at $14.21.
Read our full, actionable report on Montrose here, it’s free.
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