Looking back on waste management stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Quest Resource (NASDAQ:QRHC) and its peers.

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%.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. This year has been a different story as mixed inflation signals have led to market volatility. However, waste management stocks have held steady amidst all this with share prices up 2.1% on average since the latest earnings results.

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. This print fell short of analysts’ expectations by 4.6%. Overall, it was a disappointing quarter for the company with a miss of analysts’ earnings estimates.

“I am incredibly proud of the positive reaction and feedback we have received from clients we are onboarding, one of which has already committed to expanding our engagement with additional services.” said S. Ray Hatch, President and Chief Executive Officer of Quest.

Interestingly, the stock is up 6% since reporting and currently trades at $8.84.

Read our full report on Quest Resource here, it’s free.

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, 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.