As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the environmental and facilities services industry, including BrightView (NYSE:BV) and its peers.
Many environmental and facility services are non-discretionary (sports stadiums need to be cleaned after events), recurring, and performed through longer-term contracts. This makes for more predictable and stickier revenue streams. Additionally, there has been an increasing focus on emissions and water conservation over the last decade, driving innovation in the sector and demand for new services. Despite these tailwinds, environmental and facility services companies are still at the whim of economic cycles. Interest rates, for example, can greatly impact commercial construction projects that drive incremental demand for these services.
The 13 environmental and facilities services stocks we track reported a slower Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2% below.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. However, environmental and facilities services stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
BrightView (NYSE:BV)
An official field consultant for Major League Baseball, BrightView (NYSE:BV) offers landscaping design, development, and maintenance.
BrightView reported revenues of $738.8 million, down 3.6% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ earnings estimates but a miss of analysts’ Maintenance revenue estimates.
"Third quarter served as another milestone as we continue to progress with our One BrightView initiatives and delivered margin improvement across all segments for both the quarter and the year-to-date results,” said BrightView President and Chief Executive Officer Dale Asplund.
Interestingly, the stock is up 2% since reporting and currently trades at $14.69.
Is now the time to buy BrightView? Access our full analysis of the earnings results here, it’s free.
Best Q2: Tetra Tech (NASDAQ:TTEK)
Originally founded to focus on Alaska’s oil pipelines, Tetra Tech (NASDAQ:TTEK) provides consulting and engineering services to the water and infrastructure industries.
Tetra Tech reported revenues of $1.11 billion, up 12.4% year on year, outperforming analysts’ expectations by 2.8%. The business had a very strong quarter with an impressive beat of analysts’ backlog sales estimates and optimistic earnings guidance for the full year.
The market seems happy with the results as the stock is up 9.3% since reporting. It currently trades at $46.80.
Is now the time to buy Tetra Tech? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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, falling short of analysts’ expectations by 12%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
Perma-Fix delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 5.7% since the results and currently trades at $10.79.
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 $1.55 billion, up 11.1% year on year. This number surpassed analysts’ expectations by 1.5%. It was a very strong quarter as it also produced an impressive beat of analysts’ operating margin estimates and a decent beat of analysts’ earnings estimates.
The stock is up 6.9% since reporting and currently trades at $239.82.
Read our full, actionable report on Clean Harbors here, it’s free.
ABM Industries (NYSE:ABM)
Started with a $4.50 investment to purchase a bucket, sponge, and mop, ABM (NYSE:ABM) offers janitorial, parking, and facility services.
ABM Industries reported revenues of $2.09 billion, up 3.3% year on year. This result surpassed analysts’ expectations by 2.8%. It was a very strong quarter as it also recorded a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ earnings estimates.
The stock is down 12.6% since reporting and currently trades at $49.05.
Read our full, actionable report on ABM Industries here, it’s free.
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