Casella Waste Systems Q3 revenue misses estimates, posts net loss
Overview
US solid waste services firm's Q3 revenue rose 15%, slightly missing analyst expectations
Adjusted net income for Q3 declined 19% and missed analyst estimates
Company raised full-year revenue guidance and narrowed adjusted EBITDA outlook
Outlook
Casella Waste Systems raised 2026 revenue guidance to $2.100 bln-$2.110 bln
Company narrowed 2026 Adjusted EBITDA guidance to $475 mln-$481 mln
Casella Waste Systems reaffirmed 2026 Adjusted Free Cash Flow guidance at $200 mln-$210 mln
Result Drivers
ACQUISITIONS - Revenue growth was mainly driven by acquisitions, including rollover contributions from deals closed in prior periods
PRICING AND VOLUME - Higher collection and disposal pricing, along with increased landfill volumes, contributed to revenue growth
MID-ATLANTIC REGION INITIATIVES - Company implemented route consolidation, price increases, and floating fuel fees in the Mid-Atlantic region to address operational challenges
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $559.20 mln | $563.18 mln (10 Analysts) |
Q3 Adjusted Net Income | Miss | $22.30 mln | $23.52 mln (8 Analysts) |
Q3 Net Loss | $7 mln | ||
Q3 Adjusted EBITDA | Miss | $133.50 mln | $135.84 mln (10 Analysts) |
Q3 Operating income | $15.60 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the environmental services & equipment peer group is "buy"
Wall Street's median 12-month price target for Casella Waste Systems, Inc. is $106.00, about 7.9% above its November 6 closing price of $98.21
The stock recently traded at 70 times the next 12-month earnings vs. a P/E of 66 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)