Wrapping up Q3 earnings, we look at the numbers and key takeaways for the business services & supplies stocks, including RB Global (NYSE: RBA) and its peers.

This is a sector that encompasses many types of business, and so it follows that a number of trends will impact the space. For industrial and environmental services companies, for example, trends around environmental compliance and increasing corporate ESG commitments matter while for safety and security services companies, the intersection of physical security, cybersecurity, and workplace safety regulations are the topics du jour. Broadly, AI and automation could be tailwinds for companies in the space that invest wisely. On the other hand, shifting regulatory frameworks could force continual changes in go-to-market and costly investments.

The 19 business services & supplies stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

RB Global (NYSE: RBA)

Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE: RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.

RB Global reported revenues of $1.09 billion, up 11.3% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Interestingly, the stock is up 2% since reporting and currently trades at $98.11.

Read why we think that RB Global is one of the best business services & supplies stocks, our full report is free.

Best Q3: OPENLANE (NYSE: KAR)

Facilitating the sale of approximately 1.3 million used vehicles in 2023, OPENLANE (NYSE: KAR) operates digital marketplaces that connect sellers and buyers of used vehicles across North America and Europe, facilitating wholesale transactions.

OPENLANE reported revenues of $498.4 million, up 8.4% year on year, outperforming analysts’ expectations by 5.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.7% since reporting. It currently trades at $26.11.

Is now the time to buy OPENLANE? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: CoreCivic (NYSE: CXW)

Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE: CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States.

CoreCivic reported revenues of $580.4 million, up 18.1% year on year, exceeding analysts’ expectations by 7.3%. Still, it was a softer quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS estimates.

The stock is flat since the results and currently trades at $18.61.

Read our full analysis of CoreCivic’s results here.

Interface (NASDAQ: TILE)

Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ: TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions.

Interface reported revenues of $364.5 million, up 5.9% year on year. This number beat analysts’ expectations by 2%. It was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

The stock is up 4.8% since reporting and currently trades at $27.96.

Read our full, actionable report on Interface here, it’s free for active Edge members.

Cintas (NASDAQ: CTAS)

Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.

Cintas reported revenues of $2.72 billion, up 8.7% year on year. This result surpassed analysts’ expectations by 0.9%. More broadly, it was a slower quarter as it produced full-year revenue guidance missing analysts’ expectations significantly and a slight miss of analysts’ full-year EPS guidance estimates.

Cintas had the weakest full-year guidance update among its peers. The stock is down 8% since reporting and currently trades at $184.64.

Read our full, actionable report on Cintas here, it’s free for active Edge members.

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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