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WM Gears Up to Post Q4 Earnings: What Lies Ahead for the Stock?

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WM (WM - Free Report) is scheduled to release fourth-quarter 2024 results on Jan. 29, after market close.

See Zacks Earnings Calendar to stay ahead of market-making news.

WM’s earnings surprise history has been decent. It surpassed the Zacks Consensus Estimate in three of the trailing four quarters and met once, the average beat being 8.6%.

Automatic Data Processing, Inc. Price, Consensus and EPS Surprise

 

Automatic Data Processing, Inc. Price, Consensus and EPS Surprise

Automatic Data Processing, Inc. price-consensus-eps-surprise-chart | Automatic Data Processing, Inc. Quote

WM’s Q4 Expectations

The Zacks Consensus Estimate for revenues is pegged at $5.9 billion, suggesting a 12.6% rise from the year-ago quarter’s actual. We expect top-line growth to have been driven by the company’s strategy to maximize customer lifetime value.

We anticipate revenues from Collection to be $4.6 billion, indicating a 10.6% increase on a year-over-year basis. Our expectation for Landfill’s revenues is $1.4 billion, implying 14.8% growth from the year-ago quarter’s actual. The Transfer segment’s revenues are estimated to be $654.9 million, indicating a 14.1% rise on a year-over-year basis. The Recycling segment’s revenues are expected to be $501.9 million, implying a 19.2% increment from the year-ago quarter’s actual.

Our projection for adjusted EBITDA is $1.7 billion, suggesting 7.2% growth from the year-ago quarter’s reported figure. We believe that adjusted EBITDA is likely to have been driven by cost optimization in collection, and disposal in the company’s collection and disposal business.

The consensus estimate for earnings per share is pegged at $1.8, implying 2.9% growth from the year-ago quarter’s actual. This is likely to have been driven by improved operational efficiency and a disciplined pricing strategy.

What Our Model Predicts About WM

Our proven model does not predict an earnings beat for WM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

WM has an Earnings ESP of -0.16% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks from the broader Business services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Automatic Data Processing, Inc. (ADP - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter fiscal 2025 revenues is pegged at $5 billion, indicating 6.4% year-over-year growth. For earnings, the consensus mark is pegged at $2.3 per share, implying a 6.6% increase from the year-ago quarter’s actual. The company beat the consensus estimate in the trailing four quarters, with an average surprise of 3.2%.

ADP has an Earnings ESP of +1.15% and a Zacks Rank of 2. The company is scheduled to declare its second-quarter fiscal 2025 results on Jan. 29.

Fiserv, Inc. (FI - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter 2024 revenues is pegged at $5 billion, implying year-over-year growth of 7.5%. For earnings, the consensus mark is pegged at $2.5 per share, indicating a 13.2% rise from the year-ago quarter’s actual. The company beat the consensus estimate in the trailing four quarters, with an average surprise of 3.1%.

FI has an Earnings ESP of +0.01% and a Zacks Rank of 2 at present. The company is scheduled to declare its fourth-quarter 2024 results on Feb. 5.


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