Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at 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 Q4. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 15% 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 $599.2 million, down 4.4% year on year. This print fell short of analysts’ expectations by 2.7%. Overall, it was a slower quarter for the company with a miss of analysts’ Maintenance revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

"We are off to a strong start to the fiscal year, fueled by the growing momentum of our evolving One BrightView culture,” said BrightView President and Chief Executive Officer Dale Asplund.

The stock is down 27.4% since reporting and currently trades at $10.91.

Read our full report on BrightView 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 an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Casella Waste Systems pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 3.1% since reporting. It currently trades at $103.52.

Is now the time to buy Casella Waste Systems? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: 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. As expected, the stock is down 5.9% since the results and currently trades at $6.82.

Read our full analysis of Perma-Fix’s results here.

Veralto (NYSE: VLTO)

Spun off from Danaher in 2023, Veralto (NYSE: VLTO) provides water analytics and treatment solutions.

Veralto reported revenues of $1.35 billion, up 4.4% year on year. This number met analysts’ expectations. Zooming out, it was a slower quarter as it logged full-year EPS guidance missing analysts’ expectations.

The stock is down 15.9% since reporting and currently trades at $85.01.

Read our full, actionable report on Veralto here, it’s free.

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 result beat 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 down 4.3% since reporting and currently trades at $181.51.

Read our full, actionable report on Waste Connections here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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