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Waste Management (WM) Q1 Earnings & Revenues Beat, Rise Y/Y

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Waste Management Inc.(WM - Free Report) reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year. Total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.

Over the past year, shares of Waste Management have gained 15.4% against 17.6% decline of the industry it belongs to. The Zacks S&P 500 composite has risen 1.8% in the said time frame.

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Let’s check out the numbers in detail.

Quarterly Numbers in Detail

The Collection segment recorded revenues of $3.08 billion, up 11.1% from the prior-year quarter’s figure. The Landfill segment’s top line grew 14.9% year over year to $1.05 billion. Total revenues in the Transfer segment were up 4.5% to $486 million. Recycling segment revenues increased 32.5% to $453 million. Other businesses’ revenues totaled $575 million, up 20.5% year over year.

Adjusted operating EBITDA of $1.29 billion increased 10.7% from the year-ago quarter’s level. Adjusted operating EBITDA margin fell to 27.6% from 28.2% in the prior-year quarter.

Adjusted operating income came in at $803 million, up 16.5% from the year-ago quarter. Adjusted operating income margin rose to 17.2% from 16.8% in the year-ago quarter.

Waste Management, Inc. Price, Consensus and EPS Surprise

Waste Management, Inc. Price, Consensus and EPS Surprise

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

Waste Management exited first-quarter 2022 with cash and cash equivalents of $155 million compared with $118 million at the end of the prior quarter. Long-term debt was $13.1 billion compared with $12.7 billion at the end of the prior quarter.

The company generated $1.26 billion of cash from operating activities in the reported quarter while capital expenditures were $371 million. Free cash flow was $845 million.

During the reported quarter, the company returned $525 million to shareholders, which includes $275 million through cash dividends and $250 million through share repurchases.

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.

Stocks to Consider

Some better-ranked stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare (CCRN - Free Report) , NV5 Global (NVEE - Free Report) and Clean Harbors (CLH - Free Report) , each sporting a Zacks Rank #1.

Cross Country Healthcare has a trailing four-quarter earnings surprise of 41.5%, on average.

Cross Country Healthcare’s shares have surged 52.1% in the past year. The company has a long-term earnings growth of 6.5%.

NV5 Global has an expected earnings growth rate of 6.1% for the current year. It delivered a trailing four-quarter earnings surprise of 22.2%, on average.

NV5 Global’s shares have surged 30.6% in the past year. The company has a long-term earnings growth of 14.2%.

Clean Harbors has an expected earnings growth rate of 17% for the current year. The company has a trailing four-quarter earnings surprise of 43.2%, on average.

Clean Harbors’ shares have surged 17.6% in the past year.