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 environmental and facilities services industry, including Rollins (NYSE:ROL) and its peers.
Many environmental and facility services are non-discretionary (sports stadiums need to be cleaned after events), recurring, and performed through longer-term contracts. This makes for more predictable and stickier revenue streams. Additionally, there has been an increasing focus on emissions and water conservation over the last decade, driving innovation in the sector and demand for new services. Despite these tailwinds, environmental and facility services companies are still at the whim of economic cycles. Interest rates, for example, can greatly impact commercial construction projects that drive incremental demand for these services.
The 14 environmental and facilities services stocks we track reported a slower Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1.7% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.9% since the latest earnings results.
Rollins (NYSE:ROL)
Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE:ROL) provides pest and wildlife control services to residential and commercial customers.
Rollins reported revenues of $916.3 million, up 9% year on year. This print exceeded analysts’ expectations by 0.5%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ EPS and adjusted operating income estimates.
Unsurprisingly, the stock is down 6.7% since reporting and currently trades at $46.41.
Is now the time to buy Rollins? Access our full analysis of the earnings results here, it’s free.
Best Q3: Aris Water (NYSE:ARIS)
Primarily serving the oil and gas industry, Aris Water (NYSE:ARIS) is a provider of water handling and recycling solutions.
Aris Water reported revenues of $112.3 million, up 12.5% year on year, outperforming analysts’ expectations by 8.6%. The business had an exceptional quarter with an impressive beat of analysts’ sales volume estimates and a solid beat of analysts’ EBITDA estimates.
Aris Water delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 46.5% since reporting. It currently trades at $24.32.
Is now the time to buy Aris Water? Access our full analysis of the earnings results here, it’s free.
Weakest 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 $16.81 million, down 23.2% year on year, falling short of analysts’ expectations by 2.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Perma-Fix delivered the slowest revenue growth in the group. As expected, the stock is down 26% since the results and currently trades at $10.87.
Read our full analysis of Perma-Fix’s results here.
ABM Industries (NYSE:ABM)
Started with a $4.50 investment to purchase a bucket, sponge, and mop, ABM (NYSE:ABM) offers janitorial, parking, and facility services.
ABM Industries reported revenues of $2.18 billion, up 4% year on year. This number topped analysts’ expectations by 4.7%. It was a very strong quarter as it also put up a solid beat of analysts’ organic revenue estimates and full-year EPS guidance slightly topping analysts’ expectations.
The stock is down 6.4% since reporting and currently trades at $51.38.
Read our full, actionable report on ABM Industries here, it’s free.
BrightView (NYSE:BV)
An official field consultant for Major League Baseball, BrightView (NYSE:BV) offers landscaping design, development, and maintenance.
BrightView reported revenues of $728.7 million, down 2% year on year. This print surpassed analysts’ expectations by 0.7%. Zooming out, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates.
BrightView had the weakest full-year guidance update among its peers. The stock is down 12.1% since reporting and currently trades at $16.05.
Read our full, actionable report on BrightView here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
