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Waste Connections (WCN) Q1 Earnings & Revenues Top Estimates
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Waste Connections, Inc. (WCN - Free Report) reported impressive first-quarter 2019 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted EPS of 62 cents surpassed the consensus mark by 2 cents and improved 10.7% year over year. Quarterly revenues came in at $1.24 billion, which outpaced the consensus mark by $2 million and increased 9.2% on a year-over-year basis.
Consistent strength in solid waste pricing growth, E&P waste activity and contributions from acquisitions aided the company’s results, offsetting recycling and weather-related headwinds.
Shares of Waste Connections have gained 24.9% year to date, outperforming the industry’s 20.9% growth.
Let’s check out the numbers.
Revenues in Details
Reported revenues in the Solid Waste Collection segment increased 10.1% year over year to $889.2 million. The segment contributed 71% to total revenues.
Reported revenues in the Solid Waste Disposal and Transfer segment rose 8.8% year over year to $240.7 million. It contributed 19% to total revenues.
Reported revenues in the E&P Waste Treatment, Recovery and Disposal segment improved 20.1% year over year to $63.97 million. It contributed 5% to total revenues.
Reported revenues in the Solid Waste Recycling segment grew 13.5% year over year to $63.1 million. The unit contributed 5% to total revenues.
Reported revenues in the Intermodal and Other segment fell 3.4% year over year to $32.3 million. It contributed 3% to total revenues.
Operating Results
Adjusted EBITDA in the first quarter was $385.7 million compared with $356.9 million in the year-ago quarter. Adjusted EBITDA margin was 31% of total revenues compared with 31.3% in the prior-year quarter.
Operating income totaled $184.9 million compared with $188.7 million a year ago. Operating income, as a percentage of revenues, was 14.9% compared with 16.6% in the year-ago quarter.
Waste Connections, Inc. Price, Consensus and EPS Surprise
Waste Connections exited first-quarter 2019 with cash and cash equivalent balance of $499.5 million compared with $319.3 million in the fourth quarter. Long-term debt at the end of the quarter was $4.2 billion, flat with the prior-quarter figure.
The company generated $363.7 million of cash from operating activities in the reported quarter and spent $114.2 million on capex. Adjusted free cash flow was $246.3 million compared with $220.2 million in the last reported quarter.
Waste Connections paid dividend of $42.1 billion in the quarter.
Q2 View
Waste Connections expects revenues to be around $1.36 billion, below the current Zacks Consensus Estimate of $1.37 billion for the period. Adjusted EBITDA is estimated to be around $434 million (roughly 31.9% of revenues). Depreciation and amortization expenses are expected to be around 13.7% of revenues.
Investors interested in the broader Zacks Business Services sector are awaiting first-quarter 2019 earnings reports of key players like Aptiv (APTV - Free Report) , S&P Global (SPGI - Free Report) and CRA International (CRAI - Free Report) . All of these are slated to report results on May 2, before market open.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Waste Connections (WCN) Q1 Earnings & Revenues Top Estimates
Waste Connections, Inc. (WCN - Free Report) reported impressive first-quarter 2019 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted EPS of 62 cents surpassed the consensus mark by 2 cents and improved 10.7% year over year. Quarterly revenues came in at $1.24 billion, which outpaced the consensus mark by $2 million and increased 9.2% on a year-over-year basis.
Consistent strength in solid waste pricing growth, E&P waste activity and contributions from acquisitions aided the company’s results, offsetting recycling and weather-related headwinds.
Shares of Waste Connections have gained 24.9% year to date, outperforming the industry’s 20.9% growth.
Let’s check out the numbers.
Revenues in Details
Reported revenues in the Solid Waste Collection segment increased 10.1% year over year to $889.2 million. The segment contributed 71% to total revenues.
Reported revenues in the Solid Waste Disposal and Transfer segment rose 8.8% year over year to $240.7 million. It contributed 19% to total revenues.
Reported revenues in the E&P Waste Treatment, Recovery and Disposal segment improved 20.1% year over year to $63.97 million. It contributed 5% to total revenues.
Reported revenues in the Solid Waste Recycling segment grew 13.5% year over year to $63.1 million. The unit contributed 5% to total revenues.
Reported revenues in the Intermodal and Other segment fell 3.4% year over year to $32.3 million. It contributed 3% to total revenues.
Operating Results
Adjusted EBITDA in the first quarter was $385.7 million compared with $356.9 million in the year-ago quarter. Adjusted EBITDA margin was 31% of total revenues compared with 31.3% in the prior-year quarter.
Operating income totaled $184.9 million compared with $188.7 million a year ago. Operating income, as a percentage of revenues, was 14.9% compared with 16.6% in the year-ago quarter.
Waste Connections, Inc. Price, Consensus and EPS Surprise
Waste Connections, Inc. Price, Consensus and EPS Surprise | Waste Connections, Inc. Quote
Balance Sheet and Cash Flow
Waste Connections exited first-quarter 2019 with cash and cash equivalent balance of $499.5 million compared with $319.3 million in the fourth quarter. Long-term debt at the end of the quarter was $4.2 billion, flat with the prior-quarter figure.
The company generated $363.7 million of cash from operating activities in the reported quarter and spent $114.2 million on capex. Adjusted free cash flow was $246.3 million compared with $220.2 million in the last reported quarter.
Waste Connections paid dividend of $42.1 billion in the quarter.
Q2 View
Waste Connections expects revenues to be around $1.36 billion, below the current Zacks Consensus Estimate of $1.37 billion for the period. Adjusted EBITDA is estimated to be around $434 million (roughly 31.9% of revenues). Depreciation and amortization expenses are expected to be around 13.7% of revenues.
Zacks Rank & Upcoming Releases
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.
Investors interested in the broader Zacks Business Services sector are awaiting first-quarter 2019 earnings reports of key players like Aptiv (APTV - Free Report) , S&P Global (SPGI - Free Report) and CRA International (CRAI - Free Report) . All of these are slated to report results on May 2, before market open.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>