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As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at environmental and facilities services stocks, starting with Rollins (NYSE:ROL).
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 13 environmental and facilities services stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates.
While some environmental and facilities services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.2% since the latest earnings results.
Rollins (NYSE:ROL)
Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE:ROL) provides pest and wildlife control services to residential and commercial customers.
Rollins reported revenues of $832.2 million, up 10.4% year on year. This print exceeded analysts’ expectations by 1.5%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ adjusted operating income and EPS estimates.
The stock is up 8% since reporting and currently trades at $53.99.
Is now the time to buy Rollins? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $427.5 million, up 18.9% year on year, outperforming analysts’ expectations by 2.3%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Casella Waste Systems scored the fastest revenue growth and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 4.7% since reporting. It currently trades at $111.79.