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 Clean Harbors (NYSE: CLH) and the rest of the waste management stocks fared in Q2.
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.
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 print fell short of analysts’ expectations by 3%. Overall, it was a slower quarter for the company with a significant miss of analysts’ revenue estimates.
“Our second-quarter results reflect the consistent profitable growth of our Environmental Services (ES) segment, where we experienced strong demand for our disposal assets, and a stabilization of our Safety-Kleen Sustainability Solutions (SKSS) segment, where our collection strategies yielded favorable results,” said Mike Battles, Co-Chief Executive Officer.
Unsurprisingly, the stock is down 3.3% since reporting and currently trades at $230.59.
Read our full report on Clean Harbors here, it’s free for active Edge members.
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 an impressive beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.
Montrose achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 24.4% since reporting. It currently trades at $28.12.
Is now the time to buy Montrose? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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 $59.54 million, down 18.6% year on year, falling short of analysts’ expectations by 17.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EBITDA estimates.
Quest Resource delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 36.7% since the results and currently trades at $1.24.
Read our full analysis of Quest Resource’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 $2.41 billion, up 7.1% year on year. This number surpassed analysts’ expectations by 0.7%. It was a strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and a narrow beat of analysts’ revenue estimates.
The stock is down 7.3% since reporting and currently trades at $170.84.
Read our full, actionable report on Waste Connections here, it’s free for active Edge members.
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. This print missed analysts’ expectations by 2.5%. It was a disappointing quarter as it also produced full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.
The stock is up 43.1% since reporting and currently trades at $12.41.
Read our full, actionable report on Enviri here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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