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Waste Management (WM) Q4 Earnings Miss Estimates, Rise Y/Y
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Waste Management Inc. (WM - Free Report) reported disappointing fourth-quarter 2022 results, wherein both earnings and revenues missed the respective Zacks Consensus Estimate.
Adjusted earnings per share (excluding 9 cents from non-recurring items) of $1.30 missed the Zacks Consensus Estimate by 6.5% but improved 3.2% year over year. Total revenues of $4.94 billion also missed the Zacks Consensus Estimate by 0.7% but increased 5.5% year over year.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $3.39 billion, up 13% from the prior-year quarter’s figure. The Landfill segment’s top line grew 9.2% year over year to $1.2 billion. Total revenues in the Transfer segment were up 3% to $541 million.
The Recycling segment’s revenues dropped 24.7% to $360 million. Other businesses’ revenues totaled $620 million, up 8.6% year over year.
Waste Management, Inc. Price, Consensus and EPS Surprise
Adjusted operating EBITDA of $1.36 billion increased 8.8% from the year-ago quarter’s level. Adjusted operating EBITDA margin rose to 27.5% from 26.7% in the prior-year quarter.
Adjusted operating income came in at $814 million, up 10.1% from the year-ago quarter’s level. Adjusted operating income margin surged to 16.5% from 15.8% in the year-ago quarter.
Waste Management exited fourth-quarter 2022 with cash and cash equivalents of $351 million compared with $137 million at the end of the prior quarter. Long-term debt (less current portion) was $14.6 billion compared with $13.8 billion at the end of the prior quarter.
WM generated $1.05 billion of cash from operating activities in the reported quarter, while capital expenditures were $623 million. Free cash flow was $196 million.
During the reported quarter, Waste Management returned $705 million to its shareholders, including $266 million through cash dividends and $439 million through share repurchases.
Total revenue growth is expected to be between 4% and 5.5%, which includes organic revenue growth of nearly 5.5% from the collection and disposal business.
Adjusted operating EBITDA is expected in the range of $5.825-$5.975 billion.
Free cash flow is estimated to be between $2.6 billion and $2.7 billion.
Earnings Snapshots
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.
Quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
Adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter’s reading. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter’s reading on a reported basis and 10% on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, with both earnings and revenues beating the respective Zacks Consensus Estimate. Quarterly adjusted earnings (excluding 84 cents from non-recurring items) per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
Total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.
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Waste Management (WM) Q4 Earnings Miss Estimates, Rise Y/Y
Waste Management Inc. (WM - Free Report) reported disappointing fourth-quarter 2022 results, wherein both earnings and revenues missed the respective Zacks Consensus Estimate.
Adjusted earnings per share (excluding 9 cents from non-recurring items) of $1.30 missed the Zacks Consensus Estimate by 6.5% but improved 3.2% year over year. Total revenues of $4.94 billion also missed the Zacks Consensus Estimate by 0.7% but increased 5.5% year over year.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $3.39 billion, up 13% from the prior-year quarter’s figure. The Landfill segment’s top line grew 9.2% year over year to $1.2 billion. Total revenues in the Transfer segment were up 3% to $541 million.
The Recycling segment’s revenues dropped 24.7% to $360 million. Other businesses’ revenues totaled $620 million, up 8.6% year over year.
Waste Management, Inc. Price, Consensus and EPS Surprise
Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. Quote
Adjusted operating EBITDA of $1.36 billion increased 8.8% from the year-ago quarter’s level. Adjusted operating EBITDA margin rose to 27.5% from 26.7% in the prior-year quarter.
Adjusted operating income came in at $814 million, up 10.1% from the year-ago quarter’s level. Adjusted operating income margin surged to 16.5% from 15.8% in the year-ago quarter.
Waste Management exited fourth-quarter 2022 with cash and cash equivalents of $351 million compared with $137 million at the end of the prior quarter. Long-term debt (less current portion) was $14.6 billion compared with $13.8 billion at the end of the prior quarter.
WM generated $1.05 billion of cash from operating activities in the reported quarter, while capital expenditures were $623 million. Free cash flow was $196 million.
During the reported quarter, Waste Management returned $705 million to its shareholders, including $266 million through cash dividends and $439 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.
2023 Outlook
The company has unveiled its outlook for 2023.
Total revenue growth is expected to be between 4% and 5.5%, which includes organic revenue growth of nearly 5.5% from the collection and disposal business.
Adjusted operating EBITDA is expected in the range of $5.825-$5.975 billion.
Free cash flow is estimated to be between $2.6 billion and $2.7 billion.
Earnings Snapshots
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.
Quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
Adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter’s reading. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter’s reading on a reported basis and 10% on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, with both earnings and revenues beating the respective Zacks Consensus Estimate. Quarterly adjusted earnings (excluding 84 cents from non-recurring items) per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
Total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.