Waste Connections Inc.(WCN - Free Report) reported mixed first-quarter 2020 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of 65 cents per share beat the consensus estimate by 3.2% and increased 4.8% year over year. Revenues of $1.35 billion however missed the consensus mark marginally but improved 8.7% year over year.
So far this year, shares of Waste Connections have gained 3% against 22.9% decline of the industry it belongs to.
Revenues by Segment
Solid Waste Collection segment revenues increased 9.4% year over year to $985.61 million. The segment accounted for 72.9% of total revenues.
Solid Waste Disposal and Transfer segment revenues increased 7.9% from the year-ago quarter to $259.92 million. The segment contributed 19.2% to total revenues.
E&P Waste Treatment, Recovery and Disposal segment revenues decreased 5.9% from the year-ago quarter to $59.35 million. The segment contributed 4.4% to total revenues.
Intermodal and Other segment revenues declined 7.1% to $29.98 million. The segment accounted for 2.2% of total revenues.
Solid Waste Recycling segment revenues declined 9% year over year to $17.56 million. The segment accounted for 1.3% of total revenues.
Operating Results
Adjusted EBITDA in the reported quarter was $408.52 million compared with $385.71 million in the year-ago quarter. Adjusted EBITDA margin came in at 30.2% compared with 31% in the year-ago quarter.
Operating income totaled $216.96 million compared with $184.86 million in the year-ago quarter. Operating margin was 16% compared with 14.9% in the year-ago quarter.
Balance Sheet and Cash Flow
Waste Connections exited first-quarter 2020 with cash and cash equivalents of $326.74 million compared with $303.78 million at the end of the prior quarter. Long-term debt was $4.35 billion compared with $4.04 billion at the end of the prior quarter.
The company generated $369.59 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $235.72 million. Capital expenditure totaled $137.78 million.
Waste Connections paid out dividend of $48.02 million in the reported quarter.
2020 View
Considering the current uncertainty prevailing in the market on the back of coronavirus outbreak, Waste Connections suspended its full-year 2020 guidance. The company plans to update its full-year guidance during its second-quarter 2020 results.
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.
Performance of Other Business Services Companies
S&P Global Inc. (SPGI - Free Report) first-quarter 2020 adjusted earnings per share of $2.73 beat the consensus mark by 15.7% and improved 29.4% year over year on the back of revenue growth, benefits of productivity initiatives and reduced business travel. The stock currently carries a Zacks Rank #3.
IQVIA Holdings Inc. (IQV - Free Report) first-quarter 2020 adjusted earnings per share of $1.50 beat the consensus mark by 1.4% but decreased 1.9% on a year-over-year basis. The reported figure lies within the guided range of $1.46-$1.51. The stock currently carries a Zacks Rank #3.
Insperity, Inc. (NSP - Free Report) first-quarter 2020 adjusted earnings of $1.70 per share beat the consensus mark by 5.6% but decreased 14.1% year over year. The reported figure matched the higher end of the guided range of $1.61-$1.70. The stock currently carries a Zacks Rank #3.
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Waste Connections Inc.(WCN - Free Report) reported mixed first-quarter 2020 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of 65 cents per share beat the consensus estimate by 3.2% and increased 4.8% year over year. Revenues of $1.35 billion however missed the consensus mark marginally but improved 8.7% year over year.
So far this year, shares of Waste Connections have gained 3% against 22.9% decline of the industry it belongs to.
Revenues by Segment
Solid Waste Collection segment revenues increased 9.4% year over year to $985.61 million. The segment accounted for 72.9% of total revenues.
Solid Waste Disposal and Transfer segment revenues increased 7.9% from the year-ago quarter to $259.92 million. The segment contributed 19.2% to total revenues.
E&P Waste Treatment, Recovery and Disposal segment revenues decreased 5.9% from the year-ago quarter to $59.35 million. The segment contributed 4.4% to total revenues.
Intermodal and Other segment revenues declined 7.1% to $29.98 million. The segment accounted for 2.2% of total revenues.
Solid Waste Recycling segment revenues declined 9% year over year to $17.56 million. The segment accounted for 1.3% of total revenues.
Operating Results
Adjusted EBITDA in the reported quarter was $408.52 million compared with $385.71 million in the year-ago quarter. Adjusted EBITDA margin came in at 30.2% compared with 31% in the year-ago quarter.
Operating income totaled $216.96 million compared with $184.86 million in the year-ago quarter. Operating margin was 16% compared with 14.9% in the year-ago quarter.
Balance Sheet and Cash Flow
Waste Connections exited first-quarter 2020 with cash and cash equivalents of $326.74 million compared with $303.78 million at the end of the prior quarter. Long-term debt was $4.35 billion compared with $4.04 billion at the end of the prior quarter.
The company generated $369.59 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $235.72 million. Capital expenditure totaled $137.78 million.
Waste Connections paid out dividend of $48.02 million in the reported quarter.
2020 View
Considering the current uncertainty prevailing in the market on the back of coronavirus outbreak, Waste Connections suspended its full-year 2020 guidance. The company plans to update its full-year guidance during its second-quarter 2020 results.
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.
Performance of Other Business Services Companies
S&P Global Inc. (SPGI - Free Report) first-quarter 2020 adjusted earnings per share of $2.73 beat the consensus mark by 15.7% and improved 29.4% year over year on the back of revenue growth, benefits of productivity initiatives and reduced business travel. The stock currently carries a Zacks Rank #3.
IQVIA Holdings Inc. (IQV - Free Report) first-quarter 2020 adjusted earnings per share of $1.50 beat the consensus mark by 1.4% but decreased 1.9% on a year-over-year basis. The reported figure lies within the guided range of $1.46-$1.51. The stock currently carries a Zacks Rank #3.
Insperity, Inc. (NSP - Free Report) first-quarter 2020 adjusted earnings of $1.70 per share beat the consensus mark by 5.6% but decreased 14.1% year over year. The reported figure matched the higher end of the guided range of $1.61-$1.70. The stock currently carries a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
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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