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Thursday, December 8, 2022
HomeNewsFinanceWaste recycler Casella posts Q3 beat and raises forecast, shares spike

Waste recycler Casella posts Q3 beat and raises forecast, shares spike


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A lake in the shape of a recycling sign in the middle of untouched nature. An ecological metaphor for ecological waste management and a sustainable and economical lifestyle. 3d rendering.


Casella Waste Systems’ (CWST) third quarter results topped analyst estimates on Thursday, and the company raised its outlook for 2022, sending shares up after the bell.

Class A shares of the company were trading +5.9% at $81.39 on the Nasdaq at 18:31 ET. CSWT is down 9.6% this year as of Wednesday’s close.

The waste management company’s Q3 Non-GAAP EPS of $0.45 was 9 cents above consensus and revenue of $295.3M (+22.0% Y/Y) was nearly $25M above average analyst estimates.

Q3 revenue growth was mainly driven by positive collection and disposal pricing, higher solid waste fuel cost recovery fees, and higher pricing among other things, which partially offset lower recycling commodity prices.

For fiscal 2022, CWST raised its revenue forecast between $1.065B – $1.080B, which is also above Seeking Alpha consensus of $1.04B. The company now sees net income between $53M – $56M, up from its previous forecast of $50M – $54M.

Casella’s 2022 guidance assumes that the economy does not significantly change until year end while inflation remains at current levels and recycling commodity prices decline another 20% sequentially.

“We expect our pricing, fuel cost recovery fees, and operating efficiency programs will allow us to outpace higher costs and drive margin expansion in the fourth quarter which sets us up well for 2023,” company said in a statement.

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