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Waste Management (WM) To Report Q3 Earnings: What's in Store?
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Waste Management, Inc. (WM - Free Report) is scheduled to report third-quarter 2018 results on Oct 25, before the opening bell.
The top line is expected to benefit from higher yield and volume growth in the collection and disposal business. The bottom line is likely to be driven by the new tax reform policy.
We observe that shares of Waste Management have rallied 15.3% in the past year, outperforming the industry’s rise of 8.8%.
Benefits From Collection And Disposal Business
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $3.83 billion, indicating year-over-year growth of 3%. The year-over-year projected increase is likely to be driven by strong yield and volume growth in the collection and disposal business. The company’s recycling line of business is expected to stay weak.
In the second quarter, revenues of $3.74 billion increased 1.7% year over year.
Earnings to Improve on Tax Benefits
The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at $1.11, indicating year-over-year growth of 23.3%. Lower tax rates (as a result of Tax Cuts and Jobs Act) and improved operating results in the solid waste business to boost the bottom line.
In the second quarter, adjusted earnings of $1.01 improved 24.7% year over year.
Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if the companies are witnessing negative estimate revisions. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Waste Management has a Zacks Rank #2 and an Earnings ESP of +0.99%, a combination that increases the odds of an earnings beat.
Other Stocks to Consider
Here are a few other stocks from the broader Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in third-quarter 2018:
ICF International, Inc. (ICFI - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #2. The company is slated to report quarterly results on Nov 1.
EVO Payments, Inc. has an Earnings ESP of +2.33% and a Zacks Rank #3. The company is slated to report quarterly numbers on Nov 7.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Waste Management (WM) To Report Q3 Earnings: What's in Store?
Waste Management, Inc. (WM - Free Report) is scheduled to report third-quarter 2018 results on Oct 25, before the opening bell.
The top line is expected to benefit from higher yield and volume growth in the collection and disposal business. The bottom line is likely to be driven by the new tax reform policy.
We observe that shares of Waste Management have rallied 15.3% in the past year, outperforming the industry’s rise of 8.8%.
Benefits From Collection And Disposal Business
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $3.83 billion, indicating year-over-year growth of 3%. The year-over-year projected increase is likely to be driven by strong yield and volume growth in the collection and disposal business. The company’s recycling line of business is expected to stay weak.
In the second quarter, revenues of $3.74 billion increased 1.7% year over year.
Earnings to Improve on Tax Benefits
The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at $1.11, indicating year-over-year growth of 23.3%. Lower tax rates (as a result of Tax Cuts and Jobs Act) and improved operating results in the solid waste business to boost the bottom line.
In the second quarter, adjusted earnings of $1.01 improved 24.7% year over year.
Waste Management, Inc. Price and EPS Surprise
Waste Management, Inc. Price and EPS Surprise | Waste Management, Inc. Quote
Our Model Doesn’t Suggest a Beat
Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if the companies are witnessing negative estimate revisions. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Waste Management has a Zacks Rank #2 and an Earnings ESP of +0.99%, a combination that increases the odds of an earnings beat.
Other Stocks to Consider
Here are a few other stocks from the broader Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in third-quarter 2018:
Clean Harbors, Inc. (CLH - Free Report) has an Earnings ESP of +7.98% and a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Oct 31. You can see the complete list of today’s Zacks #1 Rank stocks here.
ICF International, Inc. (ICFI - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #2. The company is slated to report quarterly results on Nov 1.
EVO Payments, Inc. has an Earnings ESP of +2.33% and a Zacks Rank #3. The company is slated to report quarterly numbers on Nov 7.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>