Waste Connections, Inc. ( WCN Quick Quote WCN - Free Report) stock has lost 5.4% since its first-quarter 2022 earnings release on May 3. The downfall can be attributed to lower-than-expected earnings performance. Image Source: Zacks Investment Research
Adjusted earnings of 82 cents per share missed the Zacks Consensus Estimate by 1.2% but increased 17.1% year over year. Revenues of $1.65 billion topped the consensus mark by 1.9% and rose 17.9% year over year.
Acquisitions contributed $110.01 million to revenues in the reported quarter.
Revenues by Segment
The Solid Waste Collection segment’s revenues increased 15.8% year over year to $1.20 billion.
The Solid Waste Disposal and Transfer segment’s revenues increased 12.5% from the year-ago quarter’s level to $304.7 million.
The Solid Waste Recycling segment’s revenues surged 92.4% year over year to $60.5 million.
The Intermodal and Other segment’s revenues increased 22.7% to $35.58 million.
The E&P Waste Treatment, Recovery and Disposal segment’s revenues soared 65.5% from the year-ago quarter’s level to $40.8 million.
Adjusted EBITDA in the reported quarter was $502.12 million, up 15.9% from the year-ago quarter’s level. Adjusted EBITDA margin came in at 30.5% compared with 31% in the year-ago quarter.
Operating income totaled $273.86 million, up 14.9% from the prior-year quarter.
Balance Sheet and Cash Flow
Waste Connections exited first-quarter 2022 with cash and cash equivalents of $391.42 million compared with $147.44 million at the end of the prior quarter. Long-term debt was $5.82 billion compared with $5.04 billion at the end of the last-reported quarter.
The company generated $440.89 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $320.38 million. Capital expenditures totaled $152.32 million.
WCN paid out
dividends worth $59.39 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 Omnicom Group ( OMC Quick Quote OMC - Free Report) reported impressive first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Omnicom’s earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by strong margin performance.
Omnicom’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax ( EFX Quick Quote EFX - Free Report) reported better-than-expected first-quarter 2022 results.
Equifax’s adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. The reported figure exceeded the guided range of $2.08-$2.18.
Equifax’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis. The reported figure exceeded the guided range of $1.32-$1.34 billion.
Waste Management ( WM Quick Quote WM - Free Report) reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Waste Management’s adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year.
Waste Management’s total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.