Back to top

Image: Bigstock

Waste Management's (WM) Q1 Earnings and Revenues Beat Estimates

Read MoreHide Full Article

Waste Management Inc. (WM - Free Report) reported impressive first-quarter 2023 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.

Adjusted earnings per share (excluding 1 cent from non-recurring items) of $1.31 beat the Zacks Consensus Estimate by 3.2% and our estimate by 7.4%, and improved 1.6% year over year. Total revenues of $4.89 billion surpassed the Zacks Consensus Estimate by 1% and our estimate by 1.6%, and increased 5% year over year.

Over the past year, shares of ADP have dropped 2.3% compared with the 5.9% decline of the industry it belongs to.

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

Quarterly Numbers in Detail

The Collection segment recorded revenues of $3.37 billion, up 9.4% from the prior-year quarter’s figure. The Landfill segment’s top line grew 9.5% year over year to $1.15 billion. Total revenues in the Transfer segment were up 11.1% to $540 million.

The Recycling segment’s revenues dropped 21% to $358 million. Other businesses’ revenues totaled $613 million, up 6.6% year over year.

Adjusted operating EBITDA of $1.33 billion increased 3.7% from the year-ago quarter’s level. Adjusted operating EBITDA margin fell 40 basis points to 27.2% from the prior-year quarter.

Adjusted operating income came in at $828 million, up 3.1% from the year-ago quarter’s level. Adjusted operating income margin dropped to 16.9% and was 80 basis points lower than the year-ago reported figure.

Balance Sheet and Cash Flow

Waste Management exited first-quarter 2023 with cash and cash equivalents of $257 million, compared with $351 million at the end of the prior quarter. Long-term debt (less current portion) was $15 billion compared with $14.6 billion at the end of the prior quarter.

WM generated $1.04 billion in cash from operating activities in the reported quarter, while capital expenditures were $504 million. Free cash flow was $395 million.

During the reported quarter, Waste Management returned $639 million to its shareholders, including $289 million through cash dividends and $350 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 reaffirmed its 2023 outlook. 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 between $2.6 billion and $2.7 billion.

Earnings Snapshot

Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.

Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.

Fiserv, reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Omnicom Group Inc. (OMC) - free report >>

Equifax, Inc. (EFX) - free report >>

Waste Management, Inc. (WM) - free report >>

Published in