Waste Connections, Inc. (WCN - Free Report) reported solid fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 14 cents from non-recurring items) of 89 cents per share beat the Zacks Consensus Estimate by 1.1% and increased 7.2% year over year. Revenues of $1.87 billion topped the Zacks Consensus Estimate by 1.1% and rose 15.1% year over year.
Acquisitions contributed $79.4 million to revenues in the reported quarter.
Revenues by Segment
The Solid Waste Collection segment’s revenues increased 71.8% year over year to $1.16 billion.
The Solid Waste Disposal and Transfer segment’s revenues increased 19.5% from the year-ago quarter’s level to $533.1 million.
The Solid Waste Recycling segment’s revenues surged 4.3% year over year to $75.3 million.
The Intermodal and Other segment’s revenues increased 2.3% to $39.6 million in a years time.
The E&P Waste Treatment, Recovery and Disposal segment’s revenues soared 2.1% from the year-ago quarter’s level to $37.6 million.
Operating Results
Adjusted EBITDA in the reported quarter was $563.6 million, up 13.8% from the year-ago quarter’s level. Adjusted EBITDA margin came in at 30.5% compared with 30.2% in the year-ago quarter.
Operating income totaled $312 million, up 25.2% from the prior-year quarter’s level.
Balance Sheet and Cash Flow
Waste Connections exited fourth-quarter 2022 with cash and cash equivalents of $78.6 million compared with $147.4 million at the end of the prior quarter. Long-term debt was $6.89 billion compared with $6.2 billion at the end of the September quarter.
WCN generated $522.4 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $235.84 million. Capital expenditures totaled $294.4 million.
WCN paid out dividends worth $65.3 million in the reported quarter. Currently, Waste Connections carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2023 View
Revenues are estimated to be $8.050 billion. The Zacks Consensus Estimate of $8.01 billion is below the guidance.
Net income is expected to be $961 million. Adjusted EBITDA is estimated to be $2.5 billion.
Capital expenditures are projected to be approximately $925 million.
Net cash provided by operating activities is anticipated to be $2.12 billion.
Adjusted free cash flow is estimated to be $1.225 billion.
Earnings Snapshots
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.
Quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
Adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter’s reading. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter’s reading on a reported basis and 10% on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, with both earnings and revenues beating the respective Zacks Consensus Estimate. Quarterly adjusted earnings (excluding 84 cents from non-recurring items) per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
Total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.
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Waste Connections, Inc. (WCN - Free Report) reported solid fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 14 cents from non-recurring items) of 89 cents per share beat the Zacks Consensus Estimate by 1.1% and increased 7.2% year over year. Revenues of $1.87 billion topped the Zacks Consensus Estimate by 1.1% and rose 15.1% year over year.
Acquisitions contributed $79.4 million to revenues in the reported quarter.
Revenues by Segment
The Solid Waste Collection segment’s revenues increased 71.8% year over year to $1.16 billion.
The Solid Waste Disposal and Transfer segment’s revenues increased 19.5% from the year-ago quarter’s level to $533.1 million.
The Solid Waste Recycling segment’s revenues surged 4.3% year over year to $75.3 million.
The Intermodal and Other segment’s revenues increased 2.3% to $39.6 million in a years time.
The E&P Waste Treatment, Recovery and Disposal segment’s revenues soared 2.1% from the year-ago quarter’s level to $37.6 million.
Operating Results
Adjusted EBITDA in the reported quarter was $563.6 million, up 13.8% from the year-ago quarter’s level. Adjusted EBITDA margin came in at 30.5% compared with 30.2% in the year-ago quarter.
Operating income totaled $312 million, up 25.2% from the prior-year quarter’s level.
Balance Sheet and Cash Flow
Waste Connections exited fourth-quarter 2022 with cash and cash equivalents of $78.6 million compared with $147.4 million at the end of the prior quarter. Long-term debt was $6.89 billion compared with $6.2 billion at the end of the September quarter.
WCN generated $522.4 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $235.84 million. Capital expenditures totaled $294.4 million.
WCN paid out dividends worth $65.3 million in the reported quarter. Currently, Waste Connections carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2023 View
Revenues are estimated to be $8.050 billion. The Zacks Consensus Estimate of $8.01 billion is below the guidance.
Net income is expected to be $961 million. Adjusted EBITDA is estimated to be $2.5 billion.
Capital expenditures are projected to be approximately $925 million.
Net cash provided by operating activities is anticipated to be $2.12 billion.
Adjusted free cash flow is estimated to be $1.225 billion.
Earnings Snapshots
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.
Quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
Adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter’s reading. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter’s reading on a reported basis and 10% on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, with both earnings and revenues beating the respective Zacks Consensus Estimate. Quarterly adjusted earnings (excluding 84 cents from non-recurring items) per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
Total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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