Casella Waste Slides To 1Q Loss As Revenue Falls
RUTLAND, Vt. (AP) ¿ Trash hauler Casella Waste Systems Inc. on Wednesday reported a fiscal first-quarter loss, reversing a year-ago profit, as revenue dropped and low commodity prices hurt its recycling business.
Its shares rose, however, as sales still topped Wall Street expectations and the company confirmed financial guidance for fiscal 2010.
The company said the loss for the quarter that ended July 31 totaled $2.8 million, or 11 cents per share, compared with a profit of almost $2.2 million, or 8 cents per share, during the same period last year. The company said the latest-quarter loss included around $500,000, or 2 cents per share, in accounting charges to refinance some debt.
Revenue fell 14 percent to $135.9 million, from $157.9 million a year ago.Analysts surveyed by Thomson Reuters were expecting a loss of a penny per share on revenue of $132.1 million. More than half of the revenue drop was in processing and recycling revenue, which fell $13.8 million because of lower commodity prices. Solid waste revenue fell $14 million. The company said volume in economically sensitive areas fell compared with last year, with roll-off pulls and construction and demolition waste especially weak. Looking ahead, the company backed its fiscal 2010 outlook for adjusted earnings before interest, taxes, depreciation and amortization between $120 million and $126 million. Before the results were released, Casella shares had fallen 7 cents, or 2.7 cents, to close at $2.53. But they rose 25 cents, or 9.9 percent, to $2.78 in late trading.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV