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Waste Management Inc. (WM - Free Report) reported solid fourth-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.26 beat the Zacks Consensus Estimate by 0.8% and improved 11.5% year over year. Total revenues of $4.68 billion beat the consensus estimate by 1.9% and increased 15% year over year.
So far this year, shares of Waste Management have gained 33.5% against 8.4% decline of the industry it belongs to. The Zacks S&P 500 composite has risen 17.8% in the said time frame.
Image Source: Zacks Investment Research
Let’s check out the numbers in detail.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $3.01 billion, up 11.6% from the prior-year quarter’s figure. The Landfill segment’s top line grew 10.7% year over year to $1.06 billion. Total revenues in the Transfer segment were up 6.5% to $525 million. Recycling segment revenues increased 55.1% to $478 million. Other businesses’ revenues totaled $571 million, up 19.2% year over year.
Adjusted operating EBITDA of $1.25 billion increased 9.4% from the year-ago quarter’s level. Adjusted operating EBITDA margin fell to 26.7% from 28.1% in the prior-year quarter.
Adjusted operating income came in at $739 million, up 4.7% from the year-ago quarter. Adjusted operating income margin fell to 15.8% from 17.4% in the year-ago quarter.
Waste Management exited fourth-quarter 2021 with cash and cash equivalents of $118 million compared with $116 million at the end of the prior quarter. Long-term debt was $12.7 billion compared with $12.4 billion at the end of the prior quarter.
The company generated $991 million of cash from operating activities while capital expenditures were $774 million. Free cash flow was $243 million.
Waste Management, Inc. Price, Consensus and EPS Surprise
During the reported quarter, the company returned $590 million to shareholders, which includes $240 million through cash dividends and $350 million through share repurchases.
2022 Outlook
Waste Management has unveiled its outlook for 2022. Total revenue growth is expected to be 5.8% to 6.2%, which includes organic revenue growth of nearly 6% from the collection and disposal business. Adjusted operating EBITDA is expected to be between $5.325 billion and $5.425 billion. Free cash flow is estimated to be between $2.05 billion and $2.15 billion.
Robert Half International (RHI - Free Report) delivered impressive fourth-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Robert Half’s quarterly earnings of $1.51 per share beat the consensus mark by 5.6% and rose 79.8% year over year.
Robert Half’s revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis.
ADP’s adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
ADP’s total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year on a reported basis as well as on an organic constant-currency basis.
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.
Rollins’ adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Rollins’ revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.
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Waste Management (WM) Q4 Earnings & Revenues Beat, Rise Y/Y
Waste Management Inc. (WM - Free Report) reported solid fourth-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.26 beat the Zacks Consensus Estimate by 0.8% and improved 11.5% year over year. Total revenues of $4.68 billion beat the consensus estimate by 1.9% and increased 15% year over year.
So far this year, shares of Waste Management have gained 33.5% against 8.4% decline of the industry it belongs to. The Zacks S&P 500 composite has risen 17.8% in the said time frame.
Let’s check out the numbers in detail.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $3.01 billion, up 11.6% from the prior-year quarter’s figure. The Landfill segment’s top line grew 10.7% year over year to $1.06 billion. Total revenues in the Transfer segment were up 6.5% to $525 million. Recycling segment revenues increased 55.1% to $478 million. Other businesses’ revenues totaled $571 million, up 19.2% year over year.
Adjusted operating EBITDA of $1.25 billion increased 9.4% from the year-ago quarter’s level. Adjusted operating EBITDA margin fell to 26.7% from 28.1% in the prior-year quarter.
Adjusted operating income came in at $739 million, up 4.7% from the year-ago quarter. Adjusted operating income margin fell to 15.8% from 17.4% in the year-ago quarter.
Waste Management exited fourth-quarter 2021 with cash and cash equivalents of $118 million compared with $116 million at the end of the prior quarter. Long-term debt was $12.7 billion compared with $12.4 billion at the end of the prior quarter.
The company generated $991 million of cash from operating activities while capital expenditures were $774 million. Free cash flow was $243 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 $590 million to shareholders, which includes $240 million through cash dividends and $350 million through share repurchases.
2022 Outlook
Waste Management has unveiled its outlook for 2022. Total revenue growth is expected to be 5.8% to 6.2%, which includes organic revenue growth of nearly 6% from the collection and disposal business. Adjusted operating EBITDA is expected to be between $5.325 billion and $5.425 billion. Free cash flow is estimated to be between $2.05 billion and $2.15 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
Robert Half International (RHI - Free Report) delivered impressive fourth-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Robert Half’s quarterly earnings of $1.51 per share beat the consensus mark by 5.6% and rose 79.8% year over year.
Robert Half’s revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis.
Automatic Data Processing (ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results.
ADP’s adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
ADP’s total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year on a reported basis as well as on an organic constant-currency basis.
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.
Rollins’ adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Rollins’ revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.