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Waste Connections (WCN) Down 2.8% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Waste Connections (WCN - Free Report) . Shares have lost about 2.8% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Waste Connections due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Waste Connections Misses on Q1 Earnings, Beats on Revenues
Waste Connections' first-quarter 2022 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.
Operating Results
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Waste Connections has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Waste Connections has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Waste Connections (WCN) Down 2.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Waste Connections (WCN - Free Report) . Shares have lost about 2.8% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Waste Connections due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Waste Connections Misses on Q1 Earnings, Beats on Revenues
Waste Connections' first-quarter 2022 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.
Operating Results
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Waste Connections has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Waste Connections has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.