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Waste Connections, Inc. (WCN - Free Report) reported solid second-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimates.
Better-than-expected earnings did not impress investors, as the WCN stock declined marginally since the release of results on Jul 24.
Waste Connections’ adjusted earnings (excluding 17 cents from non-recurring items) of $1.2 per share beat the Zacks Consensus Estimate by 5.1% and increased 21.6% on a year-over-year basis. Revenues of $2.2 billion surpassed the consensus estimate by 1.4% and rose 11.2% from the year-ago quarter.
WCN shares have gained 27.1% over the past year, outperforming the 23.9% rally of the industry it belongs toand the 23% rise of the Zacks S&P 500 Composite.
The Solid Waste Collection segment’s revenues increased 6.6% year over year to $1.6 billion and met our estimate. The Solid Waste Disposal and Transfer segment’s revenues grew 9.7% from the year-ago quarter to $756.1 million and surpassed our estimate of $434.2 million.
The Solid Waste Recycling segment’s revenues increased 65.1% on a year-over-year basis to $63.3 million. The figure outpaced our estimate of $43.5 million. The Intermodal and Other segment’s revenues rose 24.4% from the year-ago quarter to $49.1 million, which beat our estimate of $34.9 million.
Further, the E&P Waste Treatment, Recovery, and Disposal segment’s revenues soared more than 100% from the year-ago quarter to $123.6 million, surpassing our estimate of $60.9 million.
Operating Results
Adjusted EBITDA in the reported quarter was $731.8 million, up 16.4% from the year-ago quarter. The adjusted EBITDA margin was 32.6%, which increased 150 basis points from the year-ago quarter.
Operating income totaled $424.7 million, higher than the year-ago figure of $344.1 million.
Balance Sheet & Cash Flow
Waste Connections exited the second quarter of 2024 with cash and cash equivalents of $78.7 million compared with $78.4 million at the end of the preceding quarter. The long-term debt was $6.7 billion, flat with the previous quarter.
In the reported quarter, WCN generated $574.4 million in cash from operating activities. The adjusted free cash flow was $402.6 million. Capital expenditure totaled $218.4 million. The company paid out $65.3 million worth of dividends in the quarter.
Updated 2024 Outlook
For 2024, Waste Connections anticipates revenues of $8.85 billion. The Zacks Consensus Estimate for revenues is pegged at $8.84 billion, which is lower than the company’s guidance. WCN’s adjusted EBITDA and margin are expected to be $2.90 billion and 32.8%, respectively.
S&P Global Inc. (SPGI - Free Report) reported impressive second-quarter results.
SPGI’s adjusted EPS (excluding 82 cents from non-recurring items) of $4.04 surpassed the Zacks Consensus Estimate by 10.1% and increased 29.5% year over year. Revenues of $3.5 billion beat the consensus estimate by 3.4% and improved 14.5% year over year.
IQV’s adjusted earnings (excluding 67 cents from non-recurring items) were $2.6 per share, outpacing the Zacks Consensus Estimate by 2.3% and increasing 2.4% on a year-over-year basis. Total revenues of $3.8 billion surpassed the consensus estimate marginally and rose 2.3% from the year-ago quarter.
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Waste Connections (WCN) Marginally Dips Despite Q2 Earnings Beat
Waste Connections, Inc. (WCN - Free Report) reported solid second-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimates.
Better-than-expected earnings did not impress investors, as the WCN stock declined marginally since the release of results on Jul 24.
Waste Connections’ adjusted earnings (excluding 17 cents from non-recurring items) of $1.2 per share beat the Zacks Consensus Estimate by 5.1% and increased 21.6% on a year-over-year basis. Revenues of $2.2 billion surpassed the consensus estimate by 1.4% and rose 11.2% from the year-ago quarter.
WCN shares have gained 27.1% over the past year, outperforming the 23.9% rally of the industry it belongs toand the 23% rise of the Zacks S&P 500 Composite.
Waste Connections, Inc. Price and EPS Surprise
Waste Connections, Inc. price-eps-surprise | Waste Connections, Inc. Quote
Segmental Revenues
The Solid Waste Collection segment’s revenues increased 6.6% year over year to $1.6 billion and met our estimate. The Solid Waste Disposal and Transfer segment’s revenues grew 9.7% from the year-ago quarter to $756.1 million and surpassed our estimate of $434.2 million.
The Solid Waste Recycling segment’s revenues increased 65.1% on a year-over-year basis to $63.3 million. The figure outpaced our estimate of $43.5 million. The Intermodal and Other segment’s revenues rose 24.4% from the year-ago quarter to $49.1 million, which beat our estimate of $34.9 million.
Further, the E&P Waste Treatment, Recovery, and Disposal segment’s revenues soared more than 100% from the year-ago quarter to $123.6 million, surpassing our estimate of $60.9 million.
Operating Results
Adjusted EBITDA in the reported quarter was $731.8 million, up 16.4% from the year-ago quarter. The adjusted EBITDA margin was 32.6%, which increased 150 basis points from the year-ago quarter.
Operating income totaled $424.7 million, higher than the year-ago figure of $344.1 million.
Balance Sheet & Cash Flow
Waste Connections exited the second quarter of 2024 with cash and cash equivalents of $78.7 million compared with $78.4 million at the end of the preceding quarter. The long-term debt was $6.7 billion, flat with the previous quarter.
In the reported quarter, WCN generated $574.4 million in cash from operating activities. The adjusted free cash flow was $402.6 million. Capital expenditure totaled $218.4 million. The company paid out $65.3 million worth of dividends in the quarter.
Updated 2024 Outlook
For 2024, Waste Connections anticipates revenues of $8.85 billion. The Zacks Consensus Estimate for revenues is pegged at $8.84 billion, which is lower than the company’s guidance. WCN’s adjusted EBITDA and margin are expected to be $2.90 billion and 32.8%, respectively.
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.
Earnings Snapshot
S&P Global Inc. (SPGI - Free Report) reported impressive second-quarter results.
SPGI’s adjusted EPS (excluding 82 cents from non-recurring items) of $4.04 surpassed the Zacks Consensus Estimate by 10.1% and increased 29.5% year over year. Revenues of $3.5 billion beat the consensus estimate by 3.4% and improved 14.5% year over year.
IQVIA Holdings Analytics Inc. (IQV - Free Report) reported impressive second-quarter 2024 results.
IQV’s adjusted earnings (excluding 67 cents from non-recurring items) were $2.6 per share, outpacing the Zacks Consensus Estimate by 2.3% and increasing 2.4% on a year-over-year basis. Total revenues of $3.8 billion surpassed the consensus estimate marginally and rose 2.3% from the year-ago quarter.