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GFL Environmental (TSE:GFL) Reports Q3-2022 Results, Raises Guidance — Here are the Numbers

Story Highlights

GFL Environmental reported good Q3-2022 results that were in line with analysts’ expectations in terms of earnings and ahead of revenue expectations. Further, the company raised its revenue guidance for the third time this year.

GFL Environmental (TSE: GFL) (NYSE: GFL), an environmental services company that offers non-hazardous solid waste management, infrastructure, soil remediation, and liquid waste management services, recently reported its Q3-2022 financial results. GFL’s results beat revenue expectations and matched earnings-per-share (EPS) expectations. The company also raised its revenue guidance.

GFL’s revenue reached C$1.83 billion (32.6% year-over-year growth, 15.3% organic growth), which beat expectations of C$1.709 billion. 

Meanwhile, adjusted earnings per share from continuing operations were C$0.20, in line with estimates, but non-adjusted earnings per share were a negative C$0.55. Additionally, the company’s adjusted EBITDA margin was 25.8% compared to 28% (28.9% on an adjusted basis) last year, but adjusted EBITDA grew 18.4%, nonetheless.

The company also reported adjusted cash flow from operations of C$306.4 million (7.9% growth), with adjusted free cash flow of C$97 million (a ~61% decline).

Notably, GFL raised its full-year revenue guidance again due to its solid Q3 results and the company’s outlook on foreign exchange and commodity prices. For 2022, it expects revenue to be between C$6.6 billion and C$6.65 billion (previously C$6.425 billion to C$6.475 billion), implying about 20% growth. Also, the company reaffirmed its adjusted EBITDA and adjusted free cash flow targets, which are C$1.72 billion and C$665 million at their midpoints, respectively.

Is GFL Stock a Good Buy, According to Analysts?

According to analysts, GFL stock comes in as a Strong Buy based on six Buys assigned in the past three months. The average GFL stock price target of C$50.20 implies 40.8% upside potential.

Conclusion: GFL Sees Continued Growth Despite a Worsening Economy

GFL’s results were solid and showed robust revenue and EBITDA growth. The advantage of being a recession-resistant industry such as waste management is that GFL can still thrive in a relatively harsh economic climate. Combine this with analysts being unanimously bullish on the stock, and it makes it worth considering.

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