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.