Spotting Winners: Stericycle (NASDAQ:SRCL) And Waste Management Stocks In Q1
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Stericycle (NASDAQ:SRCL) and the best and worst performers in the waste management industry.
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 Q1. As a group, revenues missed analysts’ consensus estimates by 1.9%.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
In light of this news, waste management stocks have held steady with share prices up 1% on average since the latest earnings results.
Stericycle (NASDAQ:SRCL)
Founded in 1989, Stericycle (NASDAQ:SRCL) provides waste disposal and sensitive information destruction services to healthcare organizations and other businesses.
Stericycle reported revenues of $664.9 million, down 2.8% year on year. This print fell short of analysts’ expectations by 1.7%. Overall, it was a slower quarter for the company with a miss of analysts’ organic revenue estimates.
“We are pleased with our first quarter results, which reflect improvement in adjusted EBITDA and adjusted EPS, driven by disciplined execution across our key priorities,” said Cindy J. Miller, President and Chief Executive Officer.
Interestingly, the stock is up 22.2% since reporting and currently trades at $60.95.
Read our full report on Stericycle here, it’s free.
Best Q1: 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 11.1% year on year, outperforming analysts’ expectations by 1.5%. The business had a very strong quarter with an impressive beat of analysts’ operating margin estimates and a decent beat of analysts’ earnings estimates.
Clean Harbors scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.7% since reporting. It currently trades at $244.01.
Is now the time to buy Clean Harbors? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $73.15 million, down 1.8% year on year, falling short of analysts’ expectations by 4.6%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 2.5% since the results and currently trades at $8.13.
Read our full analysis of Quest Resource’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 $5.40 billion, up 5.5% year on year. This number met analysts’ expectations. Zooming out, it was a slower quarter as it recorded a miss of analysts’ earnings estimates.
The stock is down 5.3% since reporting and currently trades at $206.
Read our full, actionable report on Waste Management here, it’s free.
Perma-Fix (NASDAQ:PESI)
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ:PESI) provides environmental waste treatment services.
Perma-Fix reported revenues of $13.99 million, down 44.1% year on year. This print lagged analysts' expectations by 12%. It was a disappointing quarter as it also logged a miss of analysts’ earnings estimates.
Perma-Fix had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 33.7% since reporting and currently trades at $13.65.
Read our full, actionable report on Perma-Fix here, it’s free.
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