The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how BrightView (NYSE: BV) and the rest of the environmental and facilities services stocks fared in Q3.

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 12 environmental and facilities services stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 1.7% below.

Luckily, environmental and facilities services stocks have performed well with share prices up 10% on average 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 $702.8 million, down 3.6% year on year. This print fell short of analysts’ expectations by 2.8%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

“Our fourth quarter and full-year results reflect the continued momentum behind our One BrightView strategy and the strengthened foundation of our business,” said Dale Asplund, BrightView President and Chief Executive Officer.

BrightView scored the highest full-year guidance raise but had the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is up 5.4% since reporting and currently trades at $12.50.

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

Best Q3: Perma-Fix (NASDAQ: PESI)

Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ: PESI) provides environmental waste treatment services.

Perma-Fix reported revenues of $17.45 million, up 3.8% year on year, outperforming analysts’ expectations by 7.1%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA 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 4.6% since reporting. It currently trades at $12.28.

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

Weakest Q3: 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 $1.55 billion, up 1.3% year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 9.5% since the results and currently trades at $222.73.

Read our full analysis of Clean Harbors’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 $2.46 billion, up 5.1% year on year. This result beat analysts’ expectations by 0.5%. It was a very strong quarter as it also put up an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 1.6% since reporting and currently trades at $176.50.

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

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 $63.34 million, down 13% year on year. This print topped analysts’ expectations by 5.9%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Quest Resource had the slowest revenue growth among its peers. The stock is up 35.5% since reporting and currently trades at $1.89.

Read our full, actionable report on Quest Resource 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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