3 Waste Removal Firms Poised to Beat Estimates This Earnings Season

Industry Overview - The U.S. service sector exhibited strong momentum in Q1 2025, driven by economic stability and growth in non-manufacturing activities, particularly influenced by the AI revolution and demand for cost efficiency [1][4] - Multiple service industries, including transportation, retail, accommodation, and finance, showed resilience and healthy activity, highlighting the sector's role in economic stability [2] Economic Performance - The U.S. GDP grew by 2.8% in 2024, slightly below the 2.9% growth in 2023, with non-manufacturing activities remaining robust as indicated by the Services PMI staying above 50% for 55 out of 58 months [4] Sector-Specific Growth Drivers - Essential services like waste management saw steady demand, while risk mitigation and consulting services gained importance due to evolving regulations, leading to increased demand for specialized service providers [5] Earnings Forecasts for Waste Management Companies - Casella Waste Systems (CWST): Expected Q1 2025 revenues of $412.4 million, a 20.9$2.2 billion, reflecting a 7.1% year-over-year growth, with earnings estimated at $1.07 per share, a decline of 2.9$6.1 billion, an 18.2% year-over-year increase, with earnings estimated at $1.66 per share, a decline of 5.1% year-over-year. WM has an Earnings ESP of +1.87% and a Zacks Rank of 3 [12][13]