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Waste Management Inc. (WM - Free Report) first-quarter 2019 earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of 94 cents beat the consensus mark and were higher than the year-ago quarter by 3 cents. Total revenues of $3.69 billion surpassed the consensus mark by $26 million and increased 5.3% year over year.
The top line benefited from strong yield and volume growth in the company’s collection and disposal business, which contributed $190 million of incremental revenues. This was, however, partially offset by $16 million decline in recycling business revenues.
Internal revenue growth from yield for collection and disposal operations was 2.7% compared with 2.3% in the year-ago quarter.
Collection and disposal business internal revenue growth from volume was 3.6% or 4.1% on a workday adjusted basis in first-quarter 2019. Total company internal revenue growth from volume, which includes recycling business, was 3.4% or 4% on a workday adjusted basis.
So far this year, shares of Waste Management have gained 19.3% compared with 19% rise of the industry it belongs to and 16.3% rise of the Zacks S&P 500 Composite.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $2.45 billion, up 6.4% from the prior-year quarter’s figure. Landfill segment’s top line increased 7.3% year over year to $864 million. Total revenues in the Transfer segment were up 9.9% to $412 million. Recycling segment revenues decreased 6.7% to $291 million. Other businesses’ revenues totaled $431 million, up 0.9% year over year.
Operating EBITDA of $987 million increased 3.4% from the year-ago quarter’s level.
Waste Management, Inc. Price, Consensus and EPS Surprise
Waste Management exited first-quarter 2019 with cash and cash equivalents of $57 million compared with $61 million at the end of the prior quarter. Long-term debt was $9.32 billion compared with $9.59 billion at the end of the prior quarter.
The company generated $890 million of cash from operating activities and spent $471 million in capital expenditures. Free cash flow was $431 million compared with $423 million in the prior-year quarter.
The company paid dividends worth $223 million and repurchased shares worth $68 million in first-quarter 2019. It spent $394 million on acquisitions during the reported quarter.
2019 Guidance
Waste Management reaffirmed its full-year 2019 guidance. The company continues to expect adjusted EPS in the range of $4.28-$4.38. The current Zacks Consensus Estimate of $4.35 lies above the midpoint of the guided range.
Adjusted operating EBITDA is expected in the range of $4.40-$4.45 billion. Free cash flow is expected between $2.025 and $2.075 billion. Adjusted effective tax rate is anticipated to be around 24%.
Investors interested in the broader Zacks Business Services sector are awaiting first-quarter 2019 earnings reports of key players like Avis Budget (CAR - Free Report) , Clean Harbors (CLH - Free Report) and IQVIA Holdings (IQV - Free Report) . All of them are slated to report on May 1.
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Waste Management (WM) Beats Q1 Earnings, Revenue Estimates
Waste Management Inc. (WM - Free Report) first-quarter 2019 earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of 94 cents beat the consensus mark and were higher than the year-ago quarter by 3 cents. Total revenues of $3.69 billion surpassed the consensus mark by $26 million and increased 5.3% year over year.
The top line benefited from strong yield and volume growth in the company’s collection and disposal business, which contributed $190 million of incremental revenues. This was, however, partially offset by $16 million decline in recycling business revenues.
Internal revenue growth from yield for collection and disposal operations was 2.7% compared with 2.3% in the year-ago quarter.
Collection and disposal business internal revenue growth from volume was 3.6% or 4.1% on a workday adjusted basis in first-quarter 2019. Total company internal revenue growth from volume, which includes recycling business, was 3.4% or 4% on a workday adjusted basis.
So far this year, shares of Waste Management have gained 19.3% compared with 19% rise of the industry it belongs to and 16.3% rise of the Zacks S&P 500 Composite.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $2.45 billion, up 6.4% from the prior-year quarter’s figure. Landfill segment’s top line increased 7.3% year over year to $864 million. Total revenues in the Transfer segment were up 9.9% to $412 million. Recycling segment revenues decreased 6.7% to $291 million. Other businesses’ revenues totaled $431 million, up 0.9% year over year.
Operating EBITDA of $987 million increased 3.4% from the year-ago quarter’s level.
Waste Management, Inc. Price, Consensus and EPS Surprise
Waste Management, Inc. Price, Consensus and EPS Surprise | Waste Management, Inc. Quote
Waste Management exited first-quarter 2019 with cash and cash equivalents of $57 million compared with $61 million at the end of the prior quarter. Long-term debt was $9.32 billion compared with $9.59 billion at the end of the prior quarter.
The company generated $890 million of cash from operating activities and spent $471 million in capital expenditures. Free cash flow was $431 million compared with $423 million in the prior-year quarter.
The company paid dividends worth $223 million and repurchased shares worth $68 million in first-quarter 2019. It spent $394 million on acquisitions during the reported quarter.
2019 Guidance
Waste Management reaffirmed its full-year 2019 guidance. The company continues to expect adjusted EPS in the range of $4.28-$4.38. The current Zacks Consensus Estimate of $4.35 lies above the midpoint of the guided range.
Adjusted operating EBITDA is expected in the range of $4.40-$4.45 billion. Free cash flow is expected between $2.025 and $2.075 billion. Adjusted effective tax rate is anticipated to be around 24%.
Zacks Rank & Upcoming Releases
Currently, Waste Management 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 awaiting first-quarter 2019 earnings reports of key players like Avis Budget (CAR - Free Report) , Clean Harbors (CLH - Free Report) and IQVIA Holdings (IQV - Free Report) . All of them are slated to report on May 1.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>