NASDAQ$CWST

Casella Waste Systems Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Casella's financial results for Q2 2024 were announced, with revenue and Adjusted EBITDA guidance raised for fiscal year 2024.

Casella Waste Systems reported a strong second quarter in 2024, with revenues up 30.2% compared to the same period in 2023. The company has acquired five businesses through August 1, 2024, and updated its fiscal year 2024 guidance to reflect these acquisitions.

  • Revenues increased by 30.2% to $377.2 million compared to Q2 2023.
  • Solid waste pricing grew by 5.7%, driven by collection and disposal price increases.
  • Net income rose by 27.6% to $7.0 million compared to Q2 2023.
  • Adjusted EBITDA increased by 26.9% to $91.6 million compared to Q2 2023.

Headline financials

Total Revenue

$377M

Previous: $290M+30.2%
EPS

$0.12

Previous: $0.36-66.7%
Adjusted EBITDA

$91.6M

No prior period
Adjusted EBITDA as % of Revenues

24.3%

No prior period
Adjusted Net Income

$21.7M

No prior period
Capital Expenditures

-$74.9M

Previous: -$50.4M-48.6%
Free Cash Flow

-$67.9M

Previous: -$44.9M-51.1%
Net Income

$7.01M

Previous: $5.49M+27.6%
Operating Income

$23M

Previous: $22.6M+1.8%
Gross Profit

$133M

Previous: $103M+29.1%
Cash & Equivalents

$209M

Previous: $466M-55.2%
Total Assets

$2.51B

Previous: $2.42B+3.9%
Stock-Based Comp

$2.67M

Previous: $2.37M+13.1%

Revenue & EPS history

Casella · Revenue · Quarterly

$377M

Q2 2024+30.2%vs Q2 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Casella · $275M total across 3 segments · Q3 2023

  • Collection
    $206M+43.0%
  • Disposal
    $66.3M+0.3%
  • Solid Waste Processing
    $3.02M-3.6%

Forward guidance

Casella raised its revenue and Adjusted EBITDA guidance for fiscal year 2024, while reaffirming guidance for Adjusted Free Cash Flow. Ranges for net income and net cash provided by operating activities were lowered.

Tailwinds

  • Revenues between $1.520 billion and $1.550 billion (raised from a range of $1.480 billion to $1.510 billion)
  • Adjusted EBITDA between $360 million and $370 million (raised from a range of $350 million to $360 million)
  • Adjusted Free Cash Flow between $140 million and $150 million
  • Incorporating acquisitions completed to date
  • Assumes a stable economic environment over the remainder of the year

Headwinds

  • Net income between $15 million and $25 million (lowered from a range of $35 million and $45 million)
  • Net cash provided by operating activities between $245 million and $255 million (lowered from a range of $260 million and $270 million)
  • Higher acquisition-related expenditures
  • Cost of financing
  • Conservative outlook on working capital

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+1.8%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+3.6%

Avg return

30 days after

61%

36 / 59 earnings

Positive

+27.5%

Q1 2010

Best reaction

-7.6%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.7%+6.7%+3.7%
Q4 2025-5.8%-12.0%-23.3%
Q3 2025+7.1%+8.6%+16.4%
Q1 2025-0.7%+2.5%-0.1%
Q4 2024+0.1%+7.8%+0.7%
Q3 2024-4.4%-2.9%+10.5%
Q2 2024+1.8%-1.5%+4.2%
Q1 2024-5.2%-4.8%+5.0%
Q4 2023-0.1%-1.4%+4.5%
Q3 2023+4.1%+5.7%+10.8%
Q2 2023-4.7%-2.4%-4.5%
Q1 2023+2.8%+3.4%+6.7%
Q4 2022-4.4%-4.9%-1.9%
Q3 2022+3.9%+6.8%+10.3%
Q2 2022+6.2%+7.0%+7.7%
Q1 2022-5.6%-11.9%-16.4%
Q4 2021+1.0%-4.1%+17.2%
Q3 2021+4.6%+5.1%+3.3%
Q2 2021+6.1%+7.4%+13.1%
Q1 2021+0.7%+0.6%+1.1%
Q4 2020+1.6%+0.3%+7.6%
Q3 2020-3.0%+0.3%+7.2%
Q2 2020+0.3%+2.1%+5.6%
Q1 2020+7.0%+6.4%+13.8%
Q4 2019-2.5%-3.3%-26.0%
Q3 2019-0.9%-1.2%+9.7%
Q2 2019+3.8%+2.9%+4.4%
Q1 2019+0.5%+0.6%+3.1%
Q4 2018+0.4%-0.7%-0.4%
Q3 2018-7.6%-4.8%+0.3%
Q2 2018+1.3%+2.4%+1.4%
Q1 2018+7.7%+0.2%-4.7%
Q4 2017-2.2%-5.4%-8.0%
Q3 2017+12.0%+6.7%+14.2%
Q2 2017-7.2%-5.3%+0.9%
Q1 2017-0.6%-1.1%-1.6%
Q4 2016+10.2%+12.1%+20.8%
Q3 2016+3.1%+6.1%+20.1%
Q2 2016+4.3%+5.5%+2.7%
Q1 2016+0.4%
Q4 2015+2.5%
Q3 2015-0.5%
Q2 2015+3.0%
Q1 2015+0.0%
Q1 2014-1.2%
Q3 2013-2.0%
Q2 2014-1.3%
Q2 2013+6.5%
Q1 2013+5.9%
Q4 2012+8.3%
Q2 2012+8.3%
Q3 2011-1.4%
Q2 2011-2.1%
Q1 2012+4.5%
Q1 2011-0.6%
Q4 2010+0.6%
Q2 2010+1.8%
Q1 2010+27.5%
Q4 2009+2.5%

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