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Q1 Earnings Highlights: Waste Management (NYSE:WM) Vs The Rest Of The Waste Management Stocks


Adam Hejl /
2024/07/03 5:37 am EDT

Let's dig into the relative performance of Waste Management (NYSE:WM) and its peers as we unravel the now-completed Q1 waste management earnings season.

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 a mixed Q1; on average, revenues were in line with analyst consensus estimates. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, but waste management stocks have shown resilience, with share prices up 7% on average since the previous earnings results.

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 a decent quarter for the company, with a solid beat of analysts' earnings estimates.

“We’re pleased with the strong operational and financial performance the WM team delivered in the first quarter,” said Jim Fish, WM’s President and Chief Executive Officer.

Waste Management Total Revenue

The stock is down 0.5% since the results and currently trades at $209.47.

Is now the time to buy Waste Management? 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 an impressive quarter for the company, with a solid beat of analysts' organic revenue estimates.

Clean Harbors Total Revenue

Clean Harbors scored the biggest analyst estimates beat among its peers. The stock is up 15.8% since the results and currently trades at $219.55.

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 16.2% since the results and currently trades at $57.95.

Read our full analysis of Stericycle's results here.

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 revenue narrowly exceeding Wall Street's estimates.

Casella Waste Systems scored the fastest revenue growth among its peers. The stock is up 2.9% since the results and currently trades at $96.86.

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

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 mixed quarter for the company, with a miss of analysts' volume estimates.

The stock is up 0.8% since the results and currently trades at $193.16.

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

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