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Reflecting On Waste Management Stocks’ Q3 Earnings: Enviri (NYSE:NVRI)

NVRI Cover Image

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 Q3. Today, we are looking at waste management stocks, starting with Enviri (NYSE: NVRI).

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 Q3. As a group, revenues beat analysts’ consensus estimates by 2.6%.

Luckily, waste management stocks have performed well with share prices up 16% on average since the latest earnings results.

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 $574.8 million, flat year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with full-year EBITDA guidance missing analysts’ expectations.

“Clean Earth delivered another record quarter with strong cash flow generation, driven by higher volumes and services pricing, ” said Enviri Chairman and CEO Nick Grasberger.

Enviri Total Revenue

Interestingly, the stock is up 55.2% since reporting and currently trades at $18.92.

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

Best Q3: Perma-Fix (NASDAQ: PESI)

Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ: PESI) provides environmental waste treatment services.

Perma-Fix reported revenues of $17.45 million, up 3.8% year on year, outperforming analysts’ expectations by 7.1%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Perma-Fix Total Revenue

The market seems happy with the results as the stock is up 19.7% since reporting. It currently trades at $15.41.

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

Weakest Q3: 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 1.3% year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

Clean Harbors delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 4.8% since the results and currently trades at $258.01.

Read our full analysis of Clean Harbors’s results here.

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 $4.21 billion, up 3.3% year on year. This print lagged analysts' expectations by 0.8%. Overall, it was a slower quarter as it also logged a significant miss of analysts’ sales volume estimates and a slight miss of analysts’ revenue estimates.

The stock is up 2.1% since reporting and currently trades at $214.24.

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

Waste Connections (NYSE: WCN)

Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE: WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.

Waste Connections reported revenues of $2.46 billion, up 5.1% year on year. This result topped analysts’ expectations by 0.5%. It was a strong quarter as it also put up a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ adjusted operating income estimates.

The stock is down 3.4% since reporting and currently trades at $167.88.

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


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