Waste Connections, Inc. (WCN - Free Report) reported decent second-quarter 2019 results.
Adjusted earnings of 69 cents per share matched the Zacks Consensus Estimate and increased 6.2% year over year. Revenues of $1.37 billion beat the consensus estimate by $9.2 million and improved 10.5% year over year.
The company has gained almost $84.3 million of revenues from its acquisitions completed since the year-ago period.
So far this year, we observe that shares of Waste Connections have gained 21.3%, outperforming the industry’s rise of 25.4%.
Let’s check out the numbers.
Revenues by Segment
Solid Waste Collection segment revenues increased 12.1% year over year to $955.39 million. The segment accounted for 69.8% of total revenues.
Solid Waste Disposal and Transfer segment revenues increased 12.8% from the year-ago quarter to $303.39 million. The segment contributed 22.1% to total revenues.
E&P Waste Treatment, Recovery and Disposal segment revenues increased 6.3% from the year-ago quarter to $64.02 million. The segment contributed 4.7% to total revenues.
Intermodal and Other segment revenues declined 16.4% to $30.51 million. The segment accounted for 2.2% of total revenues.
Solid Waste Recycling segment revenues declined 25.8% year over year to $16.33 million. The segment accounted for 1.2% of total revenues.
Adjusted EBITDA in the second quarter was $425.28 million compared with $395.51 million in the year-ago quarter. Adjusted EBITDA margin came in at 31.1% compared with 31.9% in the year-ago quarter.
Operating income totaled $222.13 million compared with $210.69 million in the year-ago quarter. Operating margin was 16.2% compared with 16.9% in the year-ago quarter.
Balance Sheet and Cash Flow
Waste Connections exited second-quarter 2019 with cash and cash equivalents of $209.21 million compared with $499.48 million at the end of the prior quarter. Long-term debt was $4.08 billion compared with $4.16 billion at the end of the prior quarter.
The company generated $389.28 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $257.58 million and capital expenditures totaled $139.55 million.
Waste Connections paid out dividend of $42.13 million in the reported quarter.
Waste Connections updated its guidance for 2019.
Revenues are anticipated to be roughly around $5.375 billion compared with the prior guidance of $5.310 billion. The current Zacks Consensus Estimate of $5.38 billion is almost in line with the guidance.
Net income is estimated at around $573 million. Adjusted EBITDA is estimated to be around $1.675 billion compared with the prior guidance of $1.705 billion.
Capital expenditures are expected to be nearly $600 million compared with the prior guidance of roughly $575 million. Net cash provided by operating activities is estimated to be around $1.510 billion compared with the prior guidance of $1.525 billion. Adjusted free cash flow is anticipated to be around $915 million compared with the prior guidance of $950 million.
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 second-quarter 2019 earnings of key players like Genpact (G - Free Report) , Green Dot (GDOT - Free Report) and Navigant Consulting (NCI - Free Report) . While Genpact and Green Dot are slated to report on Aug 7, Navigant Consulting is scheduled to release results on Aug 8.
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