Back to top

Image: Bigstock

Waste Connections (WCN) Q1 Earnings Top Estimates, Up 7.7% Y/Y

Read MoreHide Full Article

Waste Connections Inc. (WCN - Free Report) reported better-than-expected first-quarter 2021 results.

Adjusted earnings (excluding 9 cents from non-recurring items) of 70 cents per share beat the Zacks Consensus Estimate by 4.5% and increased 7.7% year over year. Revenues of $1.39 billion beat the consensus mark by 1.5% and rose 3.2% year over year.

Acquisitions contributed $40.5 million to revenues in the reported quarter.
In the past year, shares of Waste Connection have surged 36.4% compared with 35.4% increase of the industry it belongs to.

Let’s check out the numbers in detail.

Revenues by Segment

Solid Waste Collection segment revenues increased 4.8% year over year to $1.03 billion. The segment contributed 74% to total revenues.

Solid Waste Disposal and Transfer segment revenues increased 4.2% from the year-ago quarter’s level to $270.8 million. The segment contributed 19.4% to total revenues.

Intermodal and Other segment revenues increased 18.7% to $35.6 million. The segment contributed r 2.5% to total revenues.

Waste Connections, Inc. Price, Consensus and EPS Surprise

 

Waste Connections, Inc. Price, Consensus and EPS Surprise

Waste Connections, Inc. price-consensus-eps-surprise-chart | Waste Connections, Inc. Quote

 

Solid Waste Recycling segment revenues surged 79.2% year over year to $31.45 million. The segment contributed 2.25% to total revenues.

E&P Waste Treatment, Recovery and Disposal segment revenues declined 58.4% from the year-ago quarter’s level to $24.66 million. The segment contributed 1.8% to total revenues.

Operating Results

Adjusted EBITDA in the reported quarter was $433.2 million, up 6% from the year-ago quarter’s levels. Adjusted EBITDA margin came in at 31% compared with 30.2% in the year-ago quarter.

Operating income totaled $238.4 million, up 9.8% from the year-ago quarter’s figures. Operating income margin came in at 17.1% compared with 16% in the year-ago quarter.

Balance Sheet and Cash Flow

Waste Connections exited first-quarter 2021 with cash and cash equivalents of $743.46 million compared with $617.29 million at the end of the prior quarter. Long-term debt was $4.61 billion compared with $4.71 billion at the end of the prior quarter.

The company generated $400.4 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $289.8 million. Capital expenditures totaled $96.79 million.

The company paid out dividend of $53.9 million in the reported 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.

Performance of Other Business Services Companies

Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.

Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.

Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Published in