Casella Waste Systems (CWST) Q1 Earnings Report Preview: What To Look For

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Waste management company Casella (NASDAQ: CWST) will be announcing earnings results this Thursday after market close. Here’s what to expect.

Casella Waste Systems met analysts’ revenue expectations last quarter, reporting revenues of $469.1 million, up 9.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a miss of analysts’ EBITDA estimates.

Is Casella Waste Systems a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Casella Waste Systems’s revenue to grow 9.1% year on year, slowing from the 22.3% increase it recorded in the same quarter last year.

Casella Waste Systems Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Casella Waste Systems has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Casella Waste Systems’s peers in the environmental and facilities services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Waste Connections delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 0.8%, and Waste Management reported revenues up 3.5%, falling short of estimates by 0.5%. Waste Connections traded up 7.9% following the results.

Read our full analysis of Waste Connections’s results here and Waste Management’s results here.

There has been positive sentiment among investors in the environmental and facilities services segment, with share prices up 14.1% on average over the last month. Casella Waste Systems’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $112.80 (compared to the current share price of $77.75).

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