Q3 Rundown: Republic Services (NYSE:RSG) Vs Other Waste Management Stocks

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the waste management industry, including Republic Services (NYSE:RSG) 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 9 waste management stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 2.6%.

In light of this news, share prices of the companies have held steady as they are up 3.3% 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 $4.21 billion, up 3.3% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a slower quarter for the company with a significant miss of analysts’ sales volume and revenue estimates.

"We delivered strong third-quarter results as we continue to execute our strategy for sustainable, profitable growth," said Jon Vander Ark, president and chief executive officer.

Interestingly, the stock is up 1.8% since reporting and currently trades at $213.61.

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

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 a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.4% since reporting. It currently trades at $12.18.

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

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 and EPS estimates.

Clean Harbors delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 13.8% since the results and currently trades at $212.17.

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

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 print surpassed analysts’ expectations by 0.5%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is flat since reporting and currently trades at $174.71.

Read our full, actionable report on Waste Connections here, it’s free for active Edge members.

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 $224.9 million, up 25.9% year on year. This number topped analysts’ expectations by 10.9%. It was an exceptional quarter as it also put up a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.

Montrose delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 2.2% since reporting and currently trades at $25.12.

Read our full, actionable report on Montrose here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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