Waste Connections, Inc. (WCN - Free Report) reported solid fourth-quarter 2023 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimates.
Adjusted earnings (excluding 62 cents from non-recurring items) of $1.11 per share beat the Zacks Consensus Estimate by 2.8% and increased 24.7% year over year. Revenues of $2.04 billion surpassed the consensus estimate by a slight margin and rose 8.9% year over year.
Acquisitions contributed $150 million to revenues in the reported quarter.
Revenues by Segment
The Solid Waste Collection segment’s revenues increased 8.6% year over year to $1.5 billion and beat our estimate by 1.5%
The Solid Waste Disposal and Transfer segment’s revenues increased 7.8% from the year-ago quarter’s level to $393.09 million and surpassed our estimate by a slight margin.
The Solid Waste Recycling segment’s revenues increased 56.3% year over year to $39.85 million. The figure is higher than our estimated $32.6 million.
The Intermodal and Other segment’s revenues increased 4.4% to $48.9 million in a year. The E&P Waste Treatment, Recovery and Disposal segment’s revenues soared 6.7% from the year-ago quarter’s level to $56.1 million, lower than our estimated $80.5 million.
Operating Results
Adjusted EBITDA in the reported quarter was $656.04 million, up 16.4% from the year-ago quarter’s level. Adjusted EBITDA margin was 32.2% compared with 30.2% in the year-ago quarter.
Operating income totaled $224.5 million, lower than the year-ago figure of $312 million. Operating margin was 11%, down from the year-ago 16.7%.
Balance Sheet and Cash Flow
Waste Connections exited fourth-quarter 2023 with cash and cash equivalents of $78.4 million compared with $96.19 million at the end of the prior quarter. Long-term debt was $6.72 billion compared with $6.8 billion at the end of the previous quarter.
WCN generated $555.94 million in cash from operating activities in the reported quarter. Adjusted free cash flow was $254.85 million. Capital expenditures totaled $318.45 million. The company paid $73.78 million worth of dividends in the quarter.
Currently, Waste Connections carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2024 Outlook
For the full year 2024, revenues are estimated to be $8.75 billion. The Zacks Consensus Estimate of $8.76 billion is above the guidance.
Net income is expected to be $1.1 billion and adjusted EBITDA is estimated to be $2.86 billion.
Capital expenditures are projected to be approximately $1.15 billion. Net cash provided by operating activities is anticipated to be $2.35 billion.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
Waste Management Inc.(WM - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $1.74 surpassed the Zacks Consensus Estimate by 13.7% and improved 33.9% year over year. Total revenues of $5.2 billion beat the consensus estimate by a slight margin and increased 5.7% year over year.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Waste Connections, Inc. (WCN - Free Report) reported solid fourth-quarter 2023 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimates.
Adjusted earnings (excluding 62 cents from non-recurring items) of $1.11 per share beat the Zacks Consensus Estimate by 2.8% and increased 24.7% year over year. Revenues of $2.04 billion surpassed the consensus estimate by a slight margin and rose 8.9% year over year.
Acquisitions contributed $150 million to revenues in the reported quarter.
Revenues by Segment
The Solid Waste Collection segment’s revenues increased 8.6% year over year to $1.5 billion and beat our estimate by 1.5%
The Solid Waste Disposal and Transfer segment’s revenues increased 7.8% from the year-ago quarter’s level to $393.09 million and surpassed our estimate by a slight margin.
The Solid Waste Recycling segment’s revenues increased 56.3% year over year to $39.85 million. The figure is higher than our estimated $32.6 million.
The Intermodal and Other segment’s revenues increased 4.4% to $48.9 million in a year. The E&P Waste Treatment, Recovery and Disposal segment’s revenues soared 6.7% from the year-ago quarter’s level to $56.1 million, lower than our estimated $80.5 million.
Operating Results
Adjusted EBITDA in the reported quarter was $656.04 million, up 16.4% from the year-ago quarter’s level. Adjusted EBITDA margin was 32.2% compared with 30.2% in the year-ago quarter.
Operating income totaled $224.5 million, lower than the year-ago figure of $312 million. Operating margin was 11%, down from the year-ago 16.7%.
Balance Sheet and Cash Flow
Waste Connections exited fourth-quarter 2023 with cash and cash equivalents of $78.4 million compared with $96.19 million at the end of the prior quarter. Long-term debt was $6.72 billion compared with $6.8 billion at the end of the previous quarter.
WCN generated $555.94 million in cash from operating activities in the reported quarter. Adjusted free cash flow was $254.85 million. Capital expenditures totaled $318.45 million. The company paid $73.78 million worth of dividends in the quarter.
Currently, Waste Connections carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2024 Outlook
For the full year 2024, revenues are estimated to be $8.75 billion. The Zacks Consensus Estimate of $8.76 billion is above the guidance.
Net income is expected to be $1.1 billion and adjusted EBITDA is estimated to be $2.86 billion.
Capital expenditures are projected to be approximately $1.15 billion. Net cash provided by operating activities is anticipated to be $2.35 billion.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
Waste Management Inc.(WM - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $1.74 surpassed the Zacks Consensus Estimate by 13.7% and improved 33.9% year over year. Total revenues of $5.2 billion beat the consensus estimate by a slight margin and increased 5.7% year over year.
Research Chief 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.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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