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Waste Connections (WCN) Stock Up 1.6% Post Q1 Earnings Beat
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Waste Connections, Inc. (WCN - Free Report) reported solid first-quarter 2023 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
The stock gained 1.6% in response to the better-than-expected results.
Adjusted earnings (excluding 12 cents from non-recurring items) of 89 cents per share beat the Zacks Consensus Estimate and our estimate by 1.1% and increased 8.5% year over year. Revenues of $1.9 billion topped the Zacks Consensus Estimate by 0.2% and our estimate by 0.3% and rose 15.4% year over year.
Acquisitions contributed $110 million to revenues in the reported quarter.
Waste Connections, Inc. Price, Consensus and EPS Surprise
The Solid Waste Collection segment’s revenues increased 19.5% year over year to $1.43 billion.
The Solid Waste Disposal and Transfer segment’s revenues increased 16.3% from the year-ago quarter’s level to $354.5 million.
The Solid Waste Recycling segment’s revenues plunged 49.3% year over year to $30.7 million.
The Intermodal and Other segment’s revenues decreased 12.7% year over year to $38.1 million.
The E&P Waste Treatment, Recovery and Disposal segment’s revenues soared 17.9% from the year-ago quarter’s level to $48.1 million.
Operating Results
Adjusted EBITDA in the reported quarter was $566.9 million, up 12.9% from the year-ago quarter’s level. Adjusted EBITDA margin came in at 29.8%, compared with 30.5% in the year-ago quarter.
Operating income totaled $314.7 million, up 14.9% from the prior-year quarter’s level.
Balance Sheet and Cash Flow
Waste Connections exited first-quarter 2023 with cash and cash equivalents of $133.9 million, compared with $78.6 million at the end of the prior quarter. Long-term debt was $6.92 billion, compared with $6.89 billion at the end of the December quarter.
WCN generated $442.4 million in cash from operating activities in the reported quarter.
Adjusted free cash flow was $320.4 million. Capital expenditures totaled $175.8 million.
For second-quarter 2023, WCN expects revenues to be around $2 billion, which matches the Zacks Consensus Estimate. Adjusted EBITDA is expected around $615 million.
For the full year 2023, revenues are estimated to be $8.05 billion which compares unfavorably with the Zacks Consensus Estimate of $8.07 billion.
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 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 per share, 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%.
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Waste Connections (WCN) Stock Up 1.6% Post Q1 Earnings Beat
Waste Connections, Inc. (WCN - Free Report) reported solid first-quarter 2023 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
The stock gained 1.6% in response to the better-than-expected results.
Adjusted earnings (excluding 12 cents from non-recurring items) of 89 cents per share beat the Zacks Consensus Estimate and our estimate by 1.1% and increased 8.5% year over year. Revenues of $1.9 billion topped the Zacks Consensus Estimate by 0.2% and our estimate by 0.3% and rose 15.4% year over year.
Acquisitions contributed $110 million to revenues in the reported quarter.
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 19.5% year over year to $1.43 billion.
The Solid Waste Disposal and Transfer segment’s revenues increased 16.3% from the year-ago quarter’s level to $354.5 million.
The Solid Waste Recycling segment’s revenues plunged 49.3% year over year to $30.7 million.
The Intermodal and Other segment’s revenues decreased 12.7% year over year to $38.1 million.
The E&P Waste Treatment, Recovery and Disposal segment’s revenues soared 17.9% from the year-ago quarter’s level to $48.1 million.
Operating Results
Adjusted EBITDA in the reported quarter was $566.9 million, up 12.9% from the year-ago quarter’s level. Adjusted EBITDA margin came in at 29.8%, compared with 30.5% in the year-ago quarter.
Operating income totaled $314.7 million, up 14.9% from the prior-year quarter’s level.
Balance Sheet and Cash Flow
Waste Connections exited first-quarter 2023 with cash and cash equivalents of $133.9 million, compared with $78.6 million at the end of the prior quarter. Long-term debt was $6.92 billion, compared with $6.89 billion at the end of the December quarter.
WCN generated $442.4 million in cash from operating activities in the reported quarter.
Adjusted free cash flow was $320.4 million. Capital expenditures totaled $175.8 million.
WCN paid out dividends worth $65.8 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.
2023 Outlook
For second-quarter 2023, WCN expects revenues to be around $2 billion, which matches the Zacks Consensus Estimate. Adjusted EBITDA is expected around $615 million.
For the full year 2023, revenues are estimated to be $8.05 billion which compares unfavorably with the Zacks Consensus Estimate of $8.07 billion.
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 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 per share, 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%.