Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Perma-Fix (NASDAQ: PESI) 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 Q1. As a group, revenues missed analysts’ consensus estimates by 1%.
Thankfully, share prices of the companies have been resilient as they are up 8.2% on average since the latest earnings results.
Perma-Fix (NASDAQ: PESI)
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ: PESI) provides environmental waste treatment services.
Perma-Fix reported revenues of $13.92 million, up 2.2% year on year. This print fell short of analysts’ expectations by 9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
"Our first quarter results reflect the impact of several transitional headwinds," said Mark Duff, President and Chief Executive Officer of Perma-Fix Environmental Services.
Perma-Fix delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 21.1% since reporting and currently trades at $10.72.
Read our full report on Perma-Fix here, it’s free.
Best Q1: 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 $177.8 million, up 14.5% year on year, outperforming analysts’ expectations by 6%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EPS estimates.
Montrose pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 31.6% since reporting. It currently trades at $19.72.
Is now the time to buy Montrose? Access our full analysis of the earnings results here, it’s free.
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 $68.43 million, down 5.8% year on year, falling short of analysts’ expectations by 5%. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 2% since the results and currently trades at $2.48.
Read our full analysis of Quest Resource’s results here.
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 $6.02 billion, up 16.7% year on year. This print missed analysts’ expectations by 1.4%. All in all, it was a mixed quarter for the company.
The stock is up 2% since reporting and currently trades at $233.32.
Read our full, actionable report on Waste Management here, it’s free.
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 $1.43 billion, up 4% year on year. This number met analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also logged an impressive beat of analysts’ organic revenue estimates but a miss of analysts’ adjusted operating income estimates.
The stock is up 6.5% since reporting and currently trades at $227.72.
Read our full, actionable report on Clean Harbors here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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