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Waste Management's (WM) Q4 Earnings and Revenues Beat Estimates
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Waste Management Inc. (WM - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted earnings per share of $1.74 surpassed the Zacks Consensus Estimate by 13.7% and improved 33.9% year over year. Total revenues of $5.2 billion beat the consensus estimate by a slight margin and increased 5.7% year over year.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $4.12 billion, up 21.8% from the year-ago quarter’s figure and beat our estimate of $3.53 billion. The Landfill segment’s top line grew 3% year over year to $1.19 billion but missed our estimate by 3.9%. Total revenues in the Transfer segment were up 6.1% to $574 million in comparison with our expectation of $580.1 million. The Recycling segment’s revenues increased 16.9% to $421 million and surpassed our estimate of $373.5 million. The figures are before the alignment of intercompany adjustment.
Adjusted operating EBITDA of $1.56 billion, which matched our estimate, increased 14.6% from the year-ago quarter’s level. Adjusted operating EBITDA margin increased 240 basis points to 29.9% from the year-ago quarter and beat our estimate of 28.8%.
Waste Management, Inc. Price, Consensus and EPS Surprise
Waste Management exited fourth-quarter 2023 with cash and cash equivalents of $458 million compared with $150 million at the end of the prior quarter. Long-term debt (less current portion) was $15.89 billion compared with $15.13 billion at the end of the prior quarter.
WM generated $1.38 billion in cash from operating activities in the reported quarter, while capital expenditures were $675 million. Free cash flow was $717 million.
In the fourth quarter of 2023, a total of $593 million was distributed to shareholders, comprising $281 million in cash dividends and $312 million in share repurchases.
2024 Outlook
Total revenue growth is expected to be between 6% and 7%. Adjusted operating EBITDA is expected to be in the range of $6.275-$6.425 billion. Free cash flow is estimated to be between $2.75 billion and $2.95 billion.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
ManpowerGroup Inc. (MAN - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The better-than-expected earnings failed to impress the investors as the stock prices have stayed unchanged since the earnings release on Jan 30.
Quarterly adjusted earnings of $1.45 per share surpassed the consensus mark by 19.8%. The bottom line, however, declined 30.3% year over year, mainly due to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.63 billion surpassed the consensus mark by 1.5% and dipped 3.7% year over year on a reported basis. Revenues fell 5% on a constant-currency basis.
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Waste Management's (WM) Q4 Earnings and Revenues Beat Estimates
Waste Management Inc. (WM - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted earnings per share of $1.74 surpassed the Zacks Consensus Estimate by 13.7% and improved 33.9% year over year. Total revenues of $5.2 billion beat the consensus estimate by a slight margin and increased 5.7% year over year.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $4.12 billion, up 21.8% from the year-ago quarter’s figure and beat our estimate of $3.53 billion. The Landfill segment’s top line grew 3% year over year to $1.19 billion but missed our estimate by 3.9%. Total revenues in the Transfer segment were up 6.1% to $574 million in comparison with our expectation of $580.1 million. The Recycling segment’s revenues increased 16.9% to $421 million and surpassed our estimate of $373.5 million. The figures are before the alignment of intercompany adjustment.
Adjusted operating EBITDA of $1.56 billion, which matched our estimate, increased 14.6% from the year-ago quarter’s level. Adjusted operating EBITDA margin increased 240 basis points to 29.9% from the year-ago quarter and beat our estimate of 28.8%.
Waste Management, Inc. Price, Consensus and EPS Surprise
Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. Quote
Balance Sheet and Cash Flow
Waste Management exited fourth-quarter 2023 with cash and cash equivalents of $458 million compared with $150 million at the end of the prior quarter. Long-term debt (less current portion) was $15.89 billion compared with $15.13 billion at the end of the prior quarter.
WM generated $1.38 billion in cash from operating activities in the reported quarter, while capital expenditures were $675 million. Free cash flow was $717 million.
In the fourth quarter of 2023, a total of $593 million was distributed to shareholders, comprising $281 million in cash dividends and $312 million in share repurchases.
2024 Outlook
Total revenue growth is expected to be between 6% and 7%. Adjusted operating EBITDA is expected to be in the range of $6.275-$6.425 billion. Free cash flow is estimated to be between $2.75 billion and $2.95 billion.
Currently, WM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
ManpowerGroup Inc. (MAN - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The better-than-expected earnings failed to impress the investors as the stock prices have stayed unchanged since the earnings release on Jan 30.
Quarterly adjusted earnings of $1.45 per share surpassed the consensus mark by 19.8%. The bottom line, however, declined 30.3% year over year, mainly due to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.63 billion surpassed the consensus mark by 1.5% and dipped 3.7% year over year on a reported basis. Revenues fell 5% on a constant-currency basis.