Wrapping up Q3 earnings, we look at the numbers and key takeaways for the waste management stocks, including Quest Resource (NASDAQ:QRHC) 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 8 waste management stocks we track reported a softer Q3. As a group, revenues missed analysts’ consensus estimates by 2.1%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9% since the latest earnings results.
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 $72.77 million, up 3.3% year on year. This print fell short of analysts’ expectations by 5.6%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
“We were very active during the third quarter: securing significant new client wins, onboarding a record number of new clients, and expanding engagements with existing ones.” said S. Ray Hatch, President and Chief Executive Officer of Quest.
Unsurprisingly, the stock is down 31% since reporting and currently trades at $5.68.
Read our full report on Quest Resource here, it’s free.
Best Q3: Republic Services (NYSE:RSG)
Processing several million tons of recyclables annually, Republic (NYSE:RSG) provides waste management services for residences, companies, and municipalities.
Republic Services reported revenues of $4.08 billion, up 6.5% year on year, falling short of analysts’ expectations by 1.1%. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ sales volume estimates.
The market seems happy with the results as the stock is up 6.9% since reporting. It currently trades at $218.51.
Is now the time to buy Republic Services? Access our full analysis of the earnings results here, it’s free.
Perma-Fix (NASDAQ:PESI)
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ:PESI) provides environmental waste treatment services.
Perma-Fix reported revenues of $16.81 million, down 23.2% year on year, falling short of analysts’ expectations by 2.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Perma-Fix delivered the slowest revenue growth in the group. As expected, the stock is down 30.9% since the results and currently trades at $10.15.
Read our full analysis of Perma-Fix’s results here.
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 $1.53 billion, up 12% year on year. This result topped analysts’ expectations by 1.6%. However, it was a slower quarter as it logged full-year EBITDA guidance missing analysts’ expectations.
Clean Harbors delivered the biggest analyst estimates beat among its peers. The stock is down 10.3% since reporting and currently trades at $236.51.
Read our full, actionable report on Clean Harbors here, 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 $5.89 billion, up 13% year on year. This number surpassed analysts’ expectations by 0.9%. More broadly, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income and EPS estimates.
The stock is up 6.8% since reporting and currently trades at $223.92.
Read our full, actionable report on Waste Management here, it’s free.
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