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Waste Connections (WCN) Q4 Earnings Beat Estimates, Up Y/Y

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Waste Connections, Inc. (WCN - Free Report) reported solid fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.

Adjusted earnings (excluding 14 cents from non-recurring items) of 89 cents per share beat the Zacks Consensus Estimate by 1.1% and increased 7.2% year over year. Revenues of $1.87 billion topped the Zacks Consensus Estimate by 1.1% and rose 15.1% year over year.

Acquisitions contributed $79.4 million to revenues in the reported quarter.

Waste Connections, Inc. Price, Consensus and EPS Surprise

 

Waste Connections, Inc. Price, Consensus and EPS Surprise

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

 

Revenues by Segment

The Solid Waste Collection segment’s revenues increased 71.8% year over year to $1.16 billion.

The Solid Waste Disposal and Transfer segment’s revenues increased 19.5% from the year-ago quarter’s level to $533.1 million.

The Solid Waste Recycling segment’s revenues surged 4.3% year over year to $75.3 million.

The Intermodal and Other segment’s revenues increased 2.3% to $39.6 million in a years time.

The E&P Waste Treatment, Recovery and Disposal segment’s revenues soared 2.1% from the year-ago quarter’s level to $37.6 million.

Operating Results

Adjusted EBITDA in the reported quarter was $563.6 million, up 13.8% from the year-ago quarter’s level. Adjusted EBITDA margin came in at 30.5% compared with 30.2% in the year-ago quarter.

Operating income totaled $312 million, up 25.2% from the prior-year quarter’s level.

Balance Sheet and Cash Flow

Waste Connections exited fourth-quarter 2022 with cash and cash equivalents of $78.6 million compared with $147.4 million at the end of the prior quarter. Long-term debt was $6.89 billion compared with $6.2 billion at the end of the September quarter.

WCN generated $522.4 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $235.84 million. Capital expenditures totaled $294.4 million.

WCN paid out dividends worth $65.3 million in the reported quarter. Currently, Waste Connections carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

2023 View

Revenues are estimated to be $8.050 billion. The Zacks Consensus Estimate of $8.01 billion is below the guidance.

Net income is expected to be $961 million. Adjusted EBITDA is estimated to be $2.5 billion.

Capital expenditures are projected to be approximately $925 million.

Net cash provided by operating activities is anticipated to be $2.12 billion.

Adjusted free cash flow is estimated to be $1.225 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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