The news: Waste management giant Cleanaway remains on track to achieve its full-year earnings guidance despite a challenging operating environment.
The numbers: The company reiterated its expectation for FY25 underlying earnings before interest and tax to be in the range of $395 million to $425 million.
The context: Cleanaway said trading for the first three months of the fiscal year has been in line with expectations despite the challenging operating environment driven by softer economic activity.
Within the solid wastes business, commercial and industrial collections have delivered price and volume growth but at more moderate levels, while landfill operations have seen softer volumes and operating cost pressures.
More news: Shares in Cleanaway are up nearly 1.5% at $2.92 after the waste management giant stayed firm on its full-year earnings guidance despite a challenging operating environment driven by softer economic activity.
UBS analysts had a ‘buy’ rating on the stock with a price target of $3.40.
What they said: “While the operating environment remains tough, Cleanaway’s guidance implies double digit EBIT growth. We are pleased the operational efficiency program remains on track and CWY will also complete the ‘restoration’ program in FY25,” UBS analysts Lee Power said in a note.