Waste Connections Inc. ( WCN Quick Quote WCN - Free Report) reported better-than-expected second-quarter 2020 results.
Adjusted earnings of 60 cents per share beat the Zacks Consensus Estimate by 9.1% but decreased 13% year over year. Revenues of $1.31 billion beat the consensus mark by 0.4% but declined 4.7% year over year.
Revenues by Segment Solid Waste Collection segment revenues decreased 1.1% year over year to $944.64 million. The segment accounted for 72.4% of total revenues. Solid Waste Disposal and Transfer segment revenues decreased 8.2% from the year-ago quarter to $278.40 million. The segment contributed 21.3% to total revenues. E&P Waste Treatment, Recovery and Disposal segment revenues decreased 44.5% from the year-ago quarter to $35.51 million. The segment contributed 2.7% to total revenues. Intermodal and Other segment revenues declined 9.3% to $27.67 million. The segment accounted for 2.1% of total revenues. Solid Waste Recycling segment revenues improved 19.8% year over year to $19.56 million. The segment accounted for 1.5% of total revenues. Operating Results
Adjusted EBITDA in the reported quarter was $394.3 million compared with $425.3 million in the year-ago quarter. Adjusted EBITDA margin came in at 30.2% compared with 31.1% in the year-ago quarter.
Operating loss totaled $232.4 million against operating income of $222.1 millionin the year-ago quarter.
Balance Sheet and Cash Flow
Waste Connections exited second-quarter 2020 with cash and cash equivalents of $790.55 million compared with $1.19 billion at the end of the prior quarter. Long-term debt was $4.69 billion compared with $5.16 billion at the end of the prior quarter.
The company generated $383.6 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $258.8 million. Capital expenditure totaled $130.9 million.
Waste Connections paid out dividend of $48.9 million in the reported quarter.
For the full year, Waste Connections expects revenues to be around $5.325 billion. Adjusted EBITDA is estimated to be around $1.610 billion. Capital expenditures are anticipated to be nearly $550 million. Net cash provided by operating activities is expected to be between $1.344 billion and $1.374 billion. Adjusted free cash flow is expected to be between $805 million and $835 million.
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
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IQVIA Holdings (
IQV Quick Quote IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis. The reported figure exceeded the guided range of $1.00-$1.09.
Robert Half (
RHI Quick Quote RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share that beat the consensus mark by 17% but were down 58% year over year. Zacks’ Single Best Pick to Double
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