We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Waste Management Stocks' Earnings Roster for Aug 3: CLH, WCN
Read MoreHide Full Article
As second-quarter results continue to flow in, we can see a ray of light at the end of the tunnel, as earnings have started to show a slight improvement. Over 60% of the total S&P 500 index members have released their second-quarter results through Jul 29. Following the disappointing trend set in other recent quarters, growth continues to remain elusive. The second quarter is expected to be the fifth in a row to suffer an earnings decline for the benchmark index. Having said that, the pace of decline is seen to be moderating from prior periods.
The overall trend has been more or less spelled out for all sectors, except Retail and Utilities, as the two still have more than half of their earnings to report. This is going to be yet another hectic week as far as earnings releases are concerned with 116 S&P500 companies queued up to report their numbers.
Per the latest Earnings Preview report, 317 S&P 500 companies have reported their second-quarter earnings so far with 72.9% topping bottom-line estimates and 53.6% coming in ahead of top-line expectations. The overall report suggests that earnings results have moved south 3.3%, on a 0.9% decrease in revenues from the same period last year.
The poor earnings picture is majorly attributable to the inherent weakness of the Energy sector. Eight out of 16 Zacks sectors are expected to see growth in negative territory in Q2, with Energy, Basic Materials, Aerospace and Transportation suffering double-digit declines. However, Autos, Construction, Conglomerates, Utilities, Medical, Retail, Consumer Discretionary and Business Services – eight in all – are projected to land up on the brighter side, booking growth this season.
The Business Services sector is looking reasonably good. For the sector, earnings are expected to grow 5.7%, while sales are touted to rise 6.6% over last year. The projected improvement is largely due to a recovery in oil prices in the second quarter and the faded effects of the dollar strength.
Among the Waste Management stocks, which are a part of the broader Business Services sector, slated to report this week, let’s have a sneak peek at two major industry players to see how things are gearing up for the upcoming quarterly results.
Clean Harbors, Inc. (CLH - Free Report) is scheduled to report second-quarter results before the markets open on Aug 3. The company is focused on improving its efficiency and lowering operating costs through enhanced technology, process efficiencies and stringent cost management initiatives. Clean Harbors tends to have a competitive advantage in treatment, storage and disposal facility (TSDF). Hence, by setting up additional service locations near TSDFs, the company expects to minimize capital expenditures and increase its market share within the Industrial and Field Services segment. This, in turn, will increase capacity utilization and improve overall profitability. However, a major part of the segment's operations are in Canada, and therefore U.S. to Canadian dollar foreign currency translation significantly affects the segment's results.
A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for it to beat estimates. For the quarter to be reported, this Zacks Rank #2 stock has an Earnings ESP of -8.33%, thus making an earnings prediction uncertain.
Waste Connections US, Inc. (WCN - Free Report) is scheduled to report second-quarter results after the closing bell on Aug 3. Waste Connections has merged with its rival Progressive Waste Solutions Ltd this June to create an industry leader with enhanced scale and a stronger financial profile. With a complementary footprint, the combined company has pro forma revenue of approximately $4.1 billion and operates an integrated network of solid waste operations across North America. The combined company will benefit from a diverse revenue base and will have strategic assets uniquely positioned for continued growth. In addition, the combination is expected to generate approximately $50 million in annualized SG&A cost savings within the first 12 months after closing, with operational and safety-related improvements and market rationalization contributing additional upside going ahead.
For the impending release, this Zacks Rank #3 stock has an Earnings ESP of +5.56%, thus making a beat very likely.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Waste Management Stocks' Earnings Roster for Aug 3: CLH, WCN
As second-quarter results continue to flow in, we can see a ray of light at the end of the tunnel, as earnings have started to show a slight improvement. Over 60% of the total S&P 500 index members have released their second-quarter results through Jul 29. Following the disappointing trend set in other recent quarters, growth continues to remain elusive. The second quarter is expected to be the fifth in a row to suffer an earnings decline for the benchmark index. Having said that, the pace of decline is seen to be moderating from prior periods.
The overall trend has been more or less spelled out for all sectors, except Retail and Utilities, as the two still have more than half of their earnings to report. This is going to be yet another hectic week as far as earnings releases are concerned with 116 S&P500 companies queued up to report their numbers.
Per the latest Earnings Preview report, 317 S&P 500 companies have reported their second-quarter earnings so far with 72.9% topping bottom-line estimates and 53.6% coming in ahead of top-line expectations. The overall report suggests that earnings results have moved south 3.3%, on a 0.9% decrease in revenues from the same period last year.
The poor earnings picture is majorly attributable to the inherent weakness of the Energy sector. Eight out of 16 Zacks sectors are expected to see growth in negative territory in Q2, with Energy, Basic Materials, Aerospace and Transportation suffering double-digit declines. However, Autos, Construction, Conglomerates, Utilities, Medical, Retail, Consumer Discretionary and Business Services – eight in all – are projected to land up on the brighter side, booking growth this season.
The Business Services sector is looking reasonably good. For the sector, earnings are expected to grow 5.7%, while sales are touted to rise 6.6% over last year. The projected improvement is largely due to a recovery in oil prices in the second quarter and the faded effects of the dollar strength.
Among the Waste Management stocks, which are a part of the broader Business Services sector, slated to report this week, let’s have a sneak peek at two major industry players to see how things are gearing up for the upcoming quarterly results.
Clean Harbors, Inc. (CLH - Free Report) is scheduled to report second-quarter results before the markets open on Aug 3. The company is focused on improving its efficiency and lowering operating costs through enhanced technology, process efficiencies and stringent cost management initiatives. Clean Harbors tends to have a competitive advantage in treatment, storage and disposal facility (TSDF). Hence, by setting up additional service locations near TSDFs, the company expects to minimize capital expenditures and increase its market share within the Industrial and Field Services segment. This, in turn, will increase capacity utilization and improve overall profitability. However, a major part of the segment's operations are in Canada, and therefore U.S. to Canadian dollar foreign currency translation significantly affects the segment's results.
A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for it to beat estimates. For the quarter to be reported, this Zacks Rank #2 stock has an Earnings ESP of -8.33%, thus making an earnings prediction uncertain.
CLEAN HARBORS Price and EPS Surprise
CLEAN HARBORS Price and EPS Surprise | CLEAN HARBORS Quote
Waste Connections US, Inc. (WCN - Free Report) is scheduled to report second-quarter results after the closing bell on Aug 3. Waste Connections has merged with its rival Progressive Waste Solutions Ltd this June to create an industry leader with enhanced scale and a stronger financial profile. With a complementary footprint, the combined company has pro forma revenue of approximately $4.1 billion and operates an integrated network of solid waste operations across North America. The combined company will benefit from a diverse revenue base and will have strategic assets uniquely positioned for continued growth. In addition, the combination is expected to generate approximately $50 million in annualized SG&A cost savings within the first 12 months after closing, with operational and safety-related improvements and market rationalization contributing additional upside going ahead.
For the impending release, this Zacks Rank #3 stock has an Earnings ESP of +5.56%, thus making a beat very likely.
WASTE CONNECTN Price and EPS Surprise
WASTE CONNECTN Price and EPS Surprise | WASTE CONNECTN Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>