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Spotting Winners: Casella Waste Systems (NASDAQ:CWST) And Waste Management Stocks In Q1


Jabin Bastian /
2024/07/05 6:09 am EDT

As the Q1 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 Casella Waste Systems (NASDAQ:CWST) 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 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 shown resilience, with share prices up 8.2% on average since the previous earnings results.

Casella Waste Systems (NASDAQ:CWST)

Started with a single garbage truck back in 1975, Casella Waste (NASDAQ:CWST) is a waste services company that provides waste collection, disposal, and recycling.

Casella Waste Systems reported revenues of $341 million, up 29.9% year on year, in line with analysts' expectations. It was an ok quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' organic revenue estimates.

“We had a strong start to the year, driven by the continued execution of our core operating strategies and pricing programs and the successful integration of the acquisitions we completed in 2023,” said John W. Casella, Chairman and CEO of Casella Waste Systems,

Casella Waste Systems Total Revenue

Casella Waste Systems pulled off the fastest revenue growth of the whole group. The stock is up 4.1% since the results and currently trades at $98.01.

Is now the time to buy Casella Waste Systems? Access our full analysis of the earnings results here, it's free.

Best Q1: Clean Harbors (NYSE:CLH)

Having played a role in the cleanup of many historical oil spills, Clean Harbors (NYSE:CLH) provides environmental services like hazardous and non-hazardous waste disposal.

Clean Harbors reported revenues of $1.38 billion, up 5.3% year on year, outperforming analysts' expectations by 3%. 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.

Clean Harbors Total Revenue

Clean Harbors pulled off the biggest analyst estimates beat among its peers. The stock is up 18.3% since the results and currently trades at $224.31.

Is now the time to buy Clean Harbors? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Stericycle (NASDAQ:SRCL)

Having completed 500 acquisitions since its inception, Stericycle (NASDAQ:SRCL) provides waste disposal and sensitive information destruction services.

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. The stock is up 17.1% since the results and currently trades at $58.41.

Read our full analysis of Stericycle's results here.

Republic Services (NYSE:RSG)

Using a purely natural gas-power truck fleet, Republic Services (NYSE:RSG) provides waste collection and related services across the United States and Canada.

Republic Services reported revenues of $3.86 billion, up 7.8% year on year, falling short of analysts' expectations by 0.7%. It was a slower quarter for the company, with a miss of analysts' volume estimates.

The stock is up 1% since the results and currently trades at $193.54.

Read our full, actionable report on Republic Services here, it's free.

Waste Management (NYSE:WM)

Founded in 1968, Waste Management (NYSE:WM) specializes in waste collection, disposal, recycling, and environmental services across 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 was an ok quarter for the company, with a solid beat of analysts' earnings estimates.

The stock is down 0.1% since the results and currently trades at $210.2.

Read our full, actionable report on Waste Management here, it's free.

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