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Waste Management Earnings & Revenues Surpasses Estimates in Q3

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Waste Management Inc. (WM - Free Report) reported impressive third-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

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WM’s quarterly adjusted earnings of $2 per share beat the consensus mark by 5.4% and gained 20.3% on a year-over-year basis. Total revenues of $5.6 billion surpassed the consensus mark by 2% and grew 7.9% from the year-ago quarter.

Thestock has gained 17.6% in the year-to-date period, outperforming 13.7% growth of its industry.

YTD Price Performance

 

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WM’s Quarterly Numbers in Detail

The Collection segment recorded revenues of $4.3 billion, growing 4.7% from the year-ago quarter and outpacing our estimate of $4.1 billion. The Landfill segment’s top line increased 6.8% on a year-over-year basis to $1.3 billion and met our estimate. Total revenues in the Transfer segment increased 7.9% to $641 million and beat our expectation of $612.3 million. The Recycling Processing and Sales segment’s revenues increased 30.3% to $503 million and surpassed our projection of $443 million. The figures are before the alignment of intercompany adjustment.

The adjusted operating EBITDA was $1.7 billion, which beat our estimated $1.6 billion and rose 11% from the year-ago quarter. The adjusted operating EBITDA margin increased 90 basis points to 30.5% from the year-ago quarter and surpassed our projection of 30.1%.

Balance Sheet & Cash Flow of WM

Waste Management exited the third quarter of 2024 with cash and cash equivalents of $614 million compared with $172 million at the end of the preceding quarter. The long-term debt (less current portion) was $16 billion compared with the preceding quarter’s $16.5 billion.

WM generated $1.4 billion in cash from operating activities in the reported quarter, while capital expenditure was $781 million. The free cash flow was $618 million. In the third quarter of 2024, $301 million in cash dividends was distributed to shareholders.

Waste Management’s 2024 Outlook

The company anticipates 2024 revenues to grow 6%, which is greater than the higher end of the previous quarter’s guidance of 5.75%.

WM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot of WM’s Peers

Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive second-quarter fiscal 2025 results.

BAH’s quarterly adjusted earnings per share of $1.81 surpassed the Zacks Consensus Estimate by 22.3% and increased 40.3% from the year-ago quarter. The company reported revenues of $3.1 billion, which beat the consensus estimate by 6.5% and increased 18% on a year-over-year basis. Revenues, excluding billable expenses, were $2.2 billion, up 18.3% on a year-over-year basis.

Waste Connections, Inc. (WCN - Free Report) posted solid third-quarter 2024 results.

WCN’s adjusted earnings (excluding 16 cents from non-recurring items) of $1.4 per share surpassed the Zacks Consensus Estimate by 3.9% and increased 15.4% on a year-over-year basis. Revenues of $2.3 billion beat the consensus estimate by 2.2% and grew 13.3% from the year-ago quarter.


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