We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Adjusted earnings per share (EPS) came in at $1.13, which beat the consensus mark by 6 cents and rallied 32.9% year over year. Total revenues of $3.84 billion surpassed the consensus mark by $55 million and improved 5.2% year over year.
The year-over-year improvement was mainly driven by strong yield and volume growth in the collection and disposal business, which contributed $203 million of incremental revenues. Revenues from recycling business increased $18 million in the quarter.
Internal revenue growth from yield for collection and disposal operations was 2.3% compared with 2.2% in the year-ago quarter.
Traditional solid waste internal revenue growth from volume came in at 3.1% or 2.4% on a workday adjusted basis. Total company internal revenue growth from volume, which includes recycling and other ancillary businesses, was 4.7% or 4% on a workday adjusted basis.
In a year’s time, shares of Waste Management have gained 19.4% compared with the industry’s 13.1% rise.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $2.49 billion, up 5.9% from the prior-year quarter’s tally. Landfill segment’s top line increased 3.5% year over year to $914 million. Total revenues in the Transfer segment were up 13.8% to $454 million. The same in the Recycling segment increased 9.4% to $339 million. Other businesses’ revenues totaled $440 million, up 1.6% year over year.
Adjusted operating EBITDA was $1.09 billion, up 7.2% from the year-ago quarter’s level. Adjusted operating EBITDA margin improved 50 basis points (bps) to 28.4%.
Waste Management exited the fourth quarter with cash and cash equivalents of $61 million compared with $83 million at the end of the third quarter. Long-term debt at the end of the quarter was $9.6 billion, flat year over year.
The company generated $912 million of cash from operating activities and spent $454 million in capital expenditures. Free cash flow was $560 million compared with $344 million in the prior-year quarter.
The company paid dividends worth $197 million and repurchased shares worth $254 million in the fourth quarter. It spent $118 million on acquisitions of solid waste businesses during the reported quarter.
2019 Guidance
Waste Management expects adjusted EPS in the range of $4.28-$4.38. The Zacks Consensus Estimate stands at $4.46, which is well above the current guidance.
Internal revenue growth from yield on the collection and disposal business is anticipated to be more than 2.0%. Internal revenue growth from volume is expected to be approximately 2.0%.
Adjusted operating EBITDA guidance range is $4.40-$4.45 billion. Free cash flow is expected between $2.025 and $2.075 billion.
Investors interested in the broader Zacks Business Services sector are keenly awaiting fourth-quarter 2018 earnings reports of key players like Avis Budget (CAR - Free Report) , Green Dot (GDOT - Free Report) and Delphi Technologies . While Avis Budget and Green Dot are scheduled to report on Feb 20, Delphi Technologies is slated to release the same on Feb 21.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Waste Management (WM) Beats Q4 Earnings, Revenue Estimates
Waste Management, Inc. (WM - Free Report) delivered better-than-expected fourth-quarter 2018 results.
Adjusted earnings per share (EPS) came in at $1.13, which beat the consensus mark by 6 cents and rallied 32.9% year over year. Total revenues of $3.84 billion surpassed the consensus mark by $55 million and improved 5.2% year over year.
The year-over-year improvement was mainly driven by strong yield and volume growth in the collection and disposal business, which contributed $203 million of incremental revenues. Revenues from recycling business increased $18 million in the quarter.
Internal revenue growth from yield for collection and disposal operations was 2.3% compared with 2.2% in the year-ago quarter.
Traditional solid waste internal revenue growth from volume came in at 3.1% or 2.4% on a workday adjusted basis. Total company internal revenue growth from volume, which includes recycling and other ancillary businesses, was 4.7% or 4% on a workday adjusted basis.
In a year’s time, shares of Waste Management have gained 19.4% compared with the industry’s 13.1% rise.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $2.49 billion, up 5.9% from the prior-year quarter’s tally. Landfill segment’s top line increased 3.5% year over year to $914 million. Total revenues in the Transfer segment were up 13.8% to $454 million. The same in the Recycling segment increased 9.4% to $339 million. Other businesses’ revenues totaled $440 million, up 1.6% year over year.
Waste Management, Inc. Revenue (TTM)
Waste Management, Inc. Revenue (TTM) | Waste Management, Inc. Quote
Adjusted operating EBITDA was $1.09 billion, up 7.2% from the year-ago quarter’s level. Adjusted operating EBITDA margin improved 50 basis points (bps) to 28.4%.
Waste Management exited the fourth quarter with cash and cash equivalents of $61 million compared with $83 million at the end of the third quarter. Long-term debt at the end of the quarter was $9.6 billion, flat year over year.
The company generated $912 million of cash from operating activities and spent $454 million in capital expenditures. Free cash flow was $560 million compared with $344 million in the prior-year quarter.
The company paid dividends worth $197 million and repurchased shares worth $254 million in the fourth quarter. It spent $118 million on acquisitions of solid waste businesses during the reported quarter.
2019 Guidance
Waste Management expects adjusted EPS in the range of $4.28-$4.38. The Zacks Consensus Estimate stands at $4.46, which is well above the current guidance.
Internal revenue growth from yield on the collection and disposal business is anticipated to be more than 2.0%. Internal revenue growth from volume is expected to be approximately 2.0%.
Adjusted operating EBITDA guidance range is $4.40-$4.45 billion. Free cash flow is expected between $2.025 and $2.075 billion.
Zacks Rank & Upcoming Releases
Waste Management currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector are keenly awaiting fourth-quarter 2018 earnings reports of key players like Avis Budget (CAR - Free Report) , Green Dot (GDOT - Free Report) and Delphi Technologies . While Avis Budget and Green Dot are scheduled to report on Feb 20, Delphi Technologies is slated to release the same on Feb 21.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>