Waste Management Inc.(WM - Free Report) reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year. Total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.
Over the past year, shares of Waste Management have gained 15.4% against 17.6% decline of the industry it belongs to. The Zacks S&P 500 composite has risen 1.8% in the said time frame.
Let’s check out the numbers in detail.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $3.08 billion, up 11.1% from the prior-year quarter’s figure. The Landfill segment’s top line grew 14.9% year over year to $1.05 billion. Total revenues in the Transfer segment were up 4.5% to $486 million. Recycling segment revenues increased 32.5% to $453 million. Other businesses’ revenues totaled $575 million, up 20.5% year over year.
Adjusted operating EBITDA of $1.29 billion increased 10.7% from the year-ago quarter’s level. Adjusted operating EBITDA margin fell to 27.6% from 28.2% in the prior-year quarter.
Adjusted operating income came in at $803 million, up 16.5% from the year-ago quarter. Adjusted operating income margin rose to 17.2% from 16.8% in the year-ago quarter.
Waste Management exited first-quarter 2022 with cash and cash equivalents of $155 million compared with $118 million at the end of the prior quarter. Long-term debt was $13.1 billion compared with $12.7 billion at the end of the prior quarter.
The company generated $1.26 billion of cash from operating activities in the reported quarter while capital expenditures were $371 million. Free cash flow was $845 million.
During the reported quarter, the company returned $525 million to shareholders, which includes $275 million through cash dividends and $250 million through share repurchases.
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.
Stocks to Consider
Some better-ranked stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare (CCRN - Free Report) , NV5 Global (NVEE - Free Report) and Clean Harbors (CLH - Free Report) , each sporting a Zacks Rank #1.
Cross Country Healthcare has a trailing four-quarter earnings surprise of 41.5%, on average.
Cross Country Healthcare’s shares have surged 52.1% in the past year. The company has a long-term earnings growth of 6.5%.
NV5 Global has an expected earnings growth rate of 6.1% for the current year. It delivered a trailing four-quarter earnings surprise of 22.2%, on average.
NV5 Global’s shares have surged 30.6% in the past year. The company has a long-term earnings growth of 14.2%.
Clean Harbors has an expected earnings growth rate of 17% for the current year. The company has a trailing four-quarter earnings surprise of 43.2%, on average.
Clean Harbors’ shares have surged 17.6% in the past year.
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Waste Management Inc.(WM - Free Report) reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year. Total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.
Over the past year, shares of Waste Management have gained 15.4% against 17.6% decline of the industry it belongs to. The Zacks S&P 500 composite has risen 1.8% in the said time frame.
Let’s check out the numbers in detail.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $3.08 billion, up 11.1% from the prior-year quarter’s figure. The Landfill segment’s top line grew 14.9% year over year to $1.05 billion. Total revenues in the Transfer segment were up 4.5% to $486 million. Recycling segment revenues increased 32.5% to $453 million. Other businesses’ revenues totaled $575 million, up 20.5% year over year.
Adjusted operating EBITDA of $1.29 billion increased 10.7% from the year-ago quarter’s level. Adjusted operating EBITDA margin fell to 27.6% from 28.2% in the prior-year quarter.
Adjusted operating income came in at $803 million, up 16.5% from the year-ago quarter. Adjusted operating income margin rose to 17.2% from 16.8% in the year-ago quarter.
Waste Management exited first-quarter 2022 with cash and cash equivalents of $155 million compared with $118 million at the end of the prior quarter. Long-term debt was $13.1 billion compared with $12.7 billion at the end of the prior quarter.
The company generated $1.26 billion of cash from operating activities in the reported quarter while capital expenditures were $371 million. Free cash flow was $845 million.
During the reported quarter, the company returned $525 million to shareholders, which includes $275 million through cash dividends and $250 million through share repurchases.
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.
Stocks to Consider
Some better-ranked stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare (CCRN - Free Report) , NV5 Global (NVEE - Free Report) and Clean Harbors (CLH - Free Report) , each sporting a Zacks Rank #1.
Cross Country Healthcare has a trailing four-quarter earnings surprise of 41.5%, on average.
Cross Country Healthcare’s shares have surged 52.1% in the past year. The company has a long-term earnings growth of 6.5%.
NV5 Global has an expected earnings growth rate of 6.1% for the current year. It delivered a trailing four-quarter earnings surprise of 22.2%, on average.
NV5 Global’s shares have surged 30.6% in the past year. The company has a long-term earnings growth of 14.2%.
Clean Harbors has an expected earnings growth rate of 17% for the current year. The company has a trailing four-quarter earnings surprise of 43.2%, on average.
Clean Harbors’ shares have surged 17.6% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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