Q1 Earnings Highlights: Republic Services (NYSE:RSG) Vs The Rest Of The Waste Management Stocks
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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 Q1. Today, we are looking at waste management stocks, 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 mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1%.
Thankfully, share prices of the companies have been resilient as they are up 7.9% on average 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 $4.01 billion, up 3.8% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but sales volume in line with analysts’ estimates.
"We are off to a solid start to the year, and our business continues to perform well even with increased volatility in the broader economy," said Jon Vander Ark, president and chief executive officer.
The stock is up 4.1% since reporting and currently trades at $250.21.
Is now the time to buy Republic Services? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $177.8 million, up 14.5% year on year, outperforming analysts’ expectations by 6%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EPS estimates.
Montrose delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 36.6% since reporting. It currently trades at $20.47.