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Q3 Earnings Outperformers: Casella Waste Systems (NASDAQ:CWST) And The Rest Of The Waste Management Stocks

CWST Cover Image

Looking back on waste management stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Casella Waste Systems (NASDAQ: CWST) 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 Q3. As a group, revenues beat analysts’ consensus estimates by 2.6%.

Luckily, waste management stocks have performed well with share prices up 17.8% on average since the latest earnings results.

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 $485.4 million, up 17.9% year on year. This print exceeded analysts’ expectations by 1.9%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.

“We reported another quarter of record performance across our key financial metrics as we continue to execute on our operating plans and disciplined acquisition strategy,” said John W. Casella, Chairman and CEO of Casella Waste Systems, Inc.

Casella Waste Systems Total Revenue

Casella Waste Systems delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 26.8% since reporting and currently trades at $105.

Read our full report on Casella Waste Systems here, it’s free.

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.

Perma-Fix Total Revenue

The market seems happy with the results as the stock is up 22.4% since reporting. It currently trades at $15.75.

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

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.

Clean Harbors delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 6.2% since the results and currently trades at $261.39.

Read our full analysis of Clean Harbors’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 $6.31 billion, up 7.1% year on year. This result lagged analysts' expectations by 1.3%. It was a slower quarter as it also produced a slight miss of analysts’ revenue estimates and a miss of analysts’ adjusted operating income estimates.

Waste Management achieved the highest full-year guidance raise among its peers. The stock is down 3.8% since reporting and currently trades at $222.83.

Read our full, actionable report on Waste Management 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 $63.34 million, down 13% year on year. This print beat analysts’ expectations by 5.9%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Quest Resource had the slowest revenue growth among its peers. The stock is up 55% since reporting and currently trades at $2.19.

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


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