Water handling and recycling company Aris Water (NYSE:ARIS) will be reporting earnings tomorrow afternoon. Here’s what to expect.
Aris Water beat analysts’ revenue expectations by 8.7% last quarter, reporting revenues of $112.3 million, up 12.5% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ EBITDA estimates.
Is Aris Water a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Aris Water’s revenue to grow 5.3% year on year to $109.6 million, slowing from the 25.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Aris Water has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Aris Water’s peers in the environmental and facilities services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Veralto delivered year-on-year revenue growth of 4.4%, meeting analysts’ expectations, and Casella Waste Systems reported revenues up 18.9%, topping estimates by 2.3%. Veralto traded down 5.2% following the results while Casella Waste Systems’s stock price was unchanged.
Read our full analysis of Veralto’s results here and Casella Waste Systems’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the environmental and facilities services stocks have shown solid performance, the group has generally underpeformed, with share prices down 7.4% on average over the last month. Aris Water is down 5.3% during the same time and is heading into earnings with an average analyst price target of $27.36 (compared to the current share price of $26.33).
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