Petmal
Casella waste system ‘(CWST) third quarter results top analysts estimated on Thursday, and the company raised its outlook for 2022, sending shares up after the bell.
The company’s class A shares have been traded + 5.9% at $81.39 on Nasdaq at 18:31 ET. CSWT is down 9.6% this year through Wednesday.
The waste management company’s Q3 non-GAAP EPS was $0.45, 9 cents above consensus and $295.3 million in revenue (+22.0% y/y) higher. nearly $25 million above analysts’ median estimate.
Q3 revenue growth was mainly driven by aggressive collection and disposal pricing, higher solid waste fuel recovery fees and higher prices of other items, partially offsetting lower prices for recyclables.
For fiscal year 2022, CWST lift up Its revenue forecast is in the $1.065 billion – $1.080 billion range, also above the Seeking Alpha consensus of $1.04 billion. The company now has a net income of $53 million-$56 million, up from its previous forecast of $50 million-$54 million.
Casella’s 2022 guidance assumes that the economy has not changed significantly through the end of the year while inflation remains at current levels and the price of recycled goods sequentially falls another 20%.
“We expect pricing, fuel cost recovery and operational efficiency programs will allow us to overcome higher costs and drive margin expansion in the fourth quarter, which helps we have a good chance for 2023,” the company said in a statement.
