As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the waste management industry, 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 9 waste management stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 1.2%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.6% 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 $69.97 million, flat year on year. This print fell short of analysts’ expectations by 5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
Perry Moss, Quest’s Chief Executive Officer, stated, “I believe strongly in Quest’s value proposition and in the power of our platform. We have a tremendous roster of clients, and a highly capable organization focused on generating value for our stakeholders. Importantly, we have a robust pipeline of potential new business, and we expect to continue to deepen client relationships, add valuable services and solutions, invest in our business and people, and improve profitability.”
Unsurprisingly, the stock is down 37.5% since reporting and currently trades at $2.42.
Read our full report on Quest Resource here, it’s free.
Best Q4: Casella Waste Systems (NASDAQ:CWST)
Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ:CWST) offers waste management services for businesses, residents, and the government.
Casella Waste Systems reported revenues of $427.5 million, up 18.9% year on year, outperforming analysts’ expectations by 2.3%. The business had a satisfactory quarter with an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
Casella Waste Systems pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 2.8% since reporting. It currently trades at $109.80.
Is now the time to buy Casella Waste Systems? 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 $14.7 million, down 35.3% year on year, falling short of analysts’ expectations by 6.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Perma-Fix delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is flat since the results and currently trades at $7.25.
Read our full analysis of Perma-Fix’s results here.
Waste Connections (NYSE:WCN)
Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE:WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.
Waste Connections reported revenues of $2.26 billion, up 11% year on year. This number surpassed analysts’ expectations by 0.8%. Aside from that, it was a mixed quarter as it also produced a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ EPS estimates.
The stock is up 1.3% since reporting and currently trades at $192.25.
Read our full, actionable report on Waste Connections 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 result beat analysts’ expectations by 0.9%. More broadly, it was a slower quarter as it recorded a significant miss of analysts’ adjusted operating income and EPS estimates.
The stock is up 5.9% since reporting and currently trades at $222.
Read our full, actionable report on Waste Management here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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