The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how waste management stocks fared in Q2, starting with Republic Services (NYSE: RSG).
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 slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.7%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Republic Services (NYSE: RSG)
Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.
Republic Services reported revenues of $4.24 billion, up 4.6% year on year. This print fell short of analysts’ expectations by 0.7%. Overall, it was a mixed quarter for the company with a narrow beat of analysts’ sales volume estimates but full-year revenue guidance slightly missing analysts’ expectations.
Republic Services delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 8.2% since reporting and currently trades at $226.
Is now the time to buy Republic Services? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $234.5 million, up 35.3% year on year, outperforming analysts’ expectations by 24.4%. The business had an incredible quarter with a solid beat of analysts’ organic revenue and EPS estimates.
Montrose achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 34.9% since reporting. It currently trades at $30.50.
Is now the time to buy Montrose? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Enviri (NYSE: NVRI)
Cooling America’s first indoor ice rink in the 19th century, Enviri (NYSE: NVRI) offers steel and waste handling services.
Enviri reported revenues of $562.3 million, down 7.8% year on year, falling short of analysts’ expectations by 2.5%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
Interestingly, the stock is up 44.3% since the results and currently trades at $12.51.
Read our full analysis of Enviri’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 $6.43 billion, up 19% year on year. This result surpassed analysts’ expectations by 1.1%. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ EBITDA estimates but a slight miss of analysts’ adjusted operating income estimates.
The stock is down 6.1% since reporting and currently trades at $214.16.
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 $1.55 billion, flat year on year. This number lagged analysts' expectations by 3%. It was a slower quarter as it also produced a miss of analysts’ organic revenue and EPS estimates.
The stock is down 1.3% since reporting and currently trades at $235.41.
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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