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Waste Management (WM) Beats on Q2 Earnings, Ups 2021 View
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Waste Management Inc.(WM - Free Report) reported solid second-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.27 beat the Zacks Consensus Estimate by 7.6% and improved 44.3% year over year. Total revenues of $4.48 billion beat the consensus estimate by 5.2% and increased 25.7% year over year.
In the reported quarter, the company witnessed $305 million of revenues from the acquisition of Advanced Disposal and $118 million of growth from yield.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $2.92 billion, up 25.5% from the prior-year quarter’s figure. The Landfill segment’s top line grew 22.9% year over year to $1.08 billion. Total revenues in the Transfer segment were up 21.2% to $532 million. Recycling segment revenues increased 44.4% to $397 million. Other businesses’ revenues totaled $513 million, up 25.4% year over year.
Adjusted operating EBITDA of $1.31 billion increased 27.9% from the year-ago quarter’s level. Adjusted operating EBITDA margin rose to 29.3% from 28.8% in the prior-year quarter.
Adjusted operating income came in at $813 million, up 32.8% from the year-ago quarter. Adjusted operating income margin rose to 18.2% from 17.2% in the year-ago quarter.
Waste Management exited second-quarter 2021 with cash and cash equivalents of $148 million compared with $476 million at the end of the prior quarter. Long-term debt was $12.8 billion compared with $13.2 billion at the end of the prior quarter.
The company generated $1.04 billion of cash from operating activities while capital expenditures were $396 million. Free cash flow was $649 million.
Waste Management, Inc. Price, Consensus and EPS Surprise
During the reported quarter, the company returned $492 million to shareholders, which includes $242 million through cash dividends and $250 million through share repurchases.
2021 Outlook
Waste Management has raised its outlook for 2021. Total revenue growth is now expected to be 15.5% to 16% compared with the prior growth rate of 12.5% to 13%. Combined internal revenue growth from yield and volume in the collection and disposal business is expected to be 5.5% or higher. The growth rate was earlier expected to be 4.5% or higher.
Adjusted operating EBITDA is now expected to be between $5 billion and $5.1 billion compared with the prior-guided range of $4.875-$4.975 billion.
Free cash flow is now estimated to be between $2.5 billion and $2.6 billion compared with the prior-guided range of $2.325-$2.425 billion.
Equifax’s (EFX - Free Report) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis.
Robert Half’s (RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
ManpowerGroup’s (MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100%. Revenues of $5.28 billion beat the consensus mark by 2% and inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.
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Waste Management (WM) Beats on Q2 Earnings, Ups 2021 View
Waste Management Inc.(WM - Free Report) reported solid second-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.27 beat the Zacks Consensus Estimate by 7.6% and improved 44.3% year over year. Total revenues of $4.48 billion beat the consensus estimate by 5.2% and increased 25.7% year over year.
In the reported quarter, the company witnessed $305 million of revenues from the acquisition of Advanced Disposal and $118 million of growth from yield.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $2.92 billion, up 25.5% from the prior-year quarter’s figure. The Landfill segment’s top line grew 22.9% year over year to $1.08 billion. Total revenues in the Transfer segment were up 21.2% to $532 million. Recycling segment revenues increased 44.4% to $397 million. Other businesses’ revenues totaled $513 million, up 25.4% year over year.
Adjusted operating EBITDA of $1.31 billion increased 27.9% from the year-ago quarter’s level. Adjusted operating EBITDA margin rose to 29.3% from 28.8% in the prior-year quarter.
Adjusted operating income came in at $813 million, up 32.8% from the year-ago quarter. Adjusted operating income margin rose to 18.2% from 17.2% in the year-ago quarter.
Waste Management exited second-quarter 2021 with cash and cash equivalents of $148 million compared with $476 million at the end of the prior quarter. Long-term debt was $12.8 billion compared with $13.2 billion at the end of the prior quarter.
The company generated $1.04 billion of cash from operating activities while capital expenditures were $396 million. Free cash flow was $649 million.
Waste Management, Inc. Price, Consensus and EPS Surprise
Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. Quote
During the reported quarter, the company returned $492 million to shareholders, which includes $242 million through cash dividends and $250 million through share repurchases.
2021 Outlook
Waste Management has raised its outlook for 2021. Total revenue growth is now expected to be 15.5% to 16% compared with the prior growth rate of 12.5% to 13%. Combined internal revenue growth from yield and volume in the collection and disposal business is expected to be 5.5% or higher. The growth rate was earlier expected to be 4.5% or higher.
Adjusted operating EBITDA is now expected to be between $5 billion and $5.1 billion compared with the prior-guided range of $4.875-$4.975 billion.
Free cash flow is now estimated to be between $2.5 billion and $2.6 billion compared with the prior-guided range of $2.325-$2.425 billion.
Currently, Waste Management 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) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis.
Robert Half’s (RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
ManpowerGroup’s (MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100%. Revenues of $5.28 billion beat the consensus mark by 2% and inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.