Casella Waste Q2 revenue, adjusted net income beats estimates
Overview
Casella Waste Q2 revenue rises 23.4%, beating analyst expectations, per LSEG data
Adjusted EBITDA for Q2 rises 19.5% but missed analyst estimates, per LSEG data
Company completed six acquisitions, contributing $90 mln in annualized revenue
Outlook
Casella raises fiscal 2025 revenue guidance to $1.820 bln-$1.840 bln
Company revises fiscal 2025 net income forecast to $8 mln-$18 mln
Casella expects adjusted EBITDA of $410 mln-$425 mln for fiscal 2025
Company sees fiscal 2025 adjusted free cash flow at $170 mln-$180 mln
Result Drivers
ACQUISITIONS - Revenue growth driven by acquisitions contributing $90 mln in annualized revenue
PRICE INCREASES - Solid waste pricing up 5.0% from the same period in 2024
ORGANIC GROWTH - Strong performance in National Accounts within Resource Solutions segment
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $465.30 mln | $454.30 mln (8 Analysts) |
Q2 Adjusted Net Income | Beat | $23 mln | $20.70 mln (6 Analysts) |
Q2 Net Income |
| $5.20 mln |
|
Q2 Adjusted EBITDA | Miss | $109.50 mln | $111.90 mln (7 Analysts) |
Q2 Operating income |
| $19.30 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "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 $127.05, about 14.7% above its July 30 closing price of $108.37
The stock recently traded at 91 times the next 12-month earnings vs. a P/E of 97 three months ago
Press Release: ID:nGNX2Zq1LW
