Looking back on waste management stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Waste Management (NYSE:WM) 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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 2.6%.
Luckily, waste management stocks have performed well with share prices up 15.3% on average since the latest earnings results.
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 $6.44 billion, up 14.9% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a slower quarter for the company with a miss of analysts’ adjusted operating income estimates and a slight miss of analysts’ revenue estimates.
“Our third quarter results highlight momentum in WM’s earnings growth and free cash flow conversion, which is driven by our strong operating platform, diverse and growing customer base, and expanding sustainability businesses,” said Jim Fish, WM’s CEO.
Unsurprisingly, the stock is down 1.7% since reporting and currently trades at $210.23.
Is now the time to buy Waste Management? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: Perma-Fix (NASDAQ:PESI)
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ:PESI) provides environmental waste treatment services.
Perma-Fix reported revenues of $17.45 million, up 3.8% year on year, outperforming analysts’ expectations by 7.1%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.
The market seems happy with the results as the stock is up 10.1% since reporting. It currently trades at $14.18.
Is now the time to buy Perma-Fix? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 1.3% year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Clean Harbors delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 2.9% since the results and currently trades at $238.98.
Read our full analysis of Clean Harbors’s results here.
Enviri (NYSE:NVRI)
Cooling America’s first indoor ice rink in the 19th century, Enviri (NYSE:NVRI) offers steel and waste handling services.
Enviri reported revenues of $574.8 million, flat year on year. This print met analysts’ expectations. However, it was a disappointing quarter as it logged full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
The stock is up 49.3% since reporting and currently trades at $18.20.
Read our full, actionable report on Enviri here, it’s free for active Edge members.
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 $224.9 million, up 25.9% year on year. This result topped analysts’ expectations by 10.9%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.
Montrose delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 8.6% since reporting and currently trades at $26.68.
Read our full, actionable report on Montrose here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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