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 Clean Harbors (NYSE:CLH).

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 8 waste management stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 1.9%.

After much suspense, the Federal Reserve cut its policy rate by 50bps (half a percent) in September 2024. This marks the central bank’s first easing of monetary policy since 2020 and the end of its most pointed inflation-busting campaign since the 1980s. Inflation had begun to run hot in 2021 post-COVID due to a confluence of factors such as supply chain disruptions, labor shortages, and stimulus spending. While CPI (inflation) readings have been supportive lately, employment measures have prompted some concern. Going forward, the markets will debate whether this rate cut (and more potential ones in 2024 and 2025) is perfect timing to support the economy or a bit too late for a macro that has already cooled too much.

While some waste management stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.5% since the latest earnings results.

Best Q2: 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. This print exceeded analysts’ expectations by 1.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ operating margin estimates and a decent beat of analysts’ earnings estimates.

“The positive trends that have contributed to the growth of our business in recent years continued in the second quarter, fueling an excellent performance that exceeded our expectations,” said Mike Battles, Co-Chief Executive Officer.

Clean Harbors pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 8.1% since reporting and currently trades at $242.62.

We think Clean Harbors is a good business, but is it a buy today? Read our full report here, it’s free.

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 $4.05 billion, up 8.6% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a mixed quarter with a solid beat of analysts’ operating margin estimates but a miss of analysts’ volume estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $199.30.

Is now the time to buy Republic Services? Access our full analysis of the earnings results here, it’s free.

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 $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 6.5% since the results and currently trades at $7.80.

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 result was in line with analysts’ expectations. However, it was a slower quarter as it logged a miss of analysts’ earnings estimates.

The stock is down 4.7% since reporting and currently trades at $207.11.

Read our full, actionable report on Waste Management here, it’s free.

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 $610 million, flat year on year. This result lagged analysts' expectations by 1.1%. It was a disappointing quarter as it also recorded a miss of analysts’ earnings estimates.

The stock is down 13.9% since reporting and currently trades at $10.18.

Read our full, actionable report on Enviri here, it’s free.

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