- WM delivered a strong Q1 performance with an adjusted EPS of $1.75, a considerable beat compared to the estimated $1.51 and last year’s $1.31.
- The operating revenue for the quarter was $5.16 billion, a 5.5% increase year on year. However, this fell below the estimated $5.22 billion.
- The collection revenue hit $3.62 billion, marking a 7.2% rise compared to the same quarter last year, although it didn’t meet the estimated revenue of $3.79 billion.
- Landfill revenue also surged by 2.2% year on year, reaching $1.18 billion, which was slightly less than the estimate of $1.21 billion.
- Transfer revenue grew by 3.7% compared to last year reaching $560 million. However, it fell short of the estimated $571 million.
- Recycling revenue noted a modest 2.8% increase with $368 million, still below the projected $422.2 million.
- Adjusted operating EBITDA for the quarter was robust at $1.53 billion, a 15% increase year on year, and higher than the projected $1.48 billion.
- The adjusted operating EBITDA margin was 29.6%, higher than the estimated 28.2% and last year’s 27.2%.
- A major surge was recorded in free cash flow at $714 million, which is an 81% increase year on year, and considerably higher than the estimated $391.3 million.
- The analysts’ consensus pointed towards more positive assessments with 10 buys, 11 holds, and only 1 sell.
Waste Management on Smartkarma
Waste Management, Inc. has been under the analyst spotlight on Smartkarma, with coverage from Baptista Research shedding light on the company’s recent performance and outlook. In one report, titled “Waste Management Inc.: Is There A Negative Impact Of Inflation and The Changing Dynamic Of Sustainability-Related Capital Expenditures? – Major Drivers,” the analyst notes the company’s strong end to 2023, highlighted by a 15% increase in fourth quarter operating EBITDA. Despite exceeding full-year guidance, uncertainties surrounding economic conditions pose potential risks moving forward.
Another report, titled “Waste Management: Recycling Tech Transforms Business! Inside their Next-Gen Sustainability Approach! – Major Drivers,” highlights Waste Management‘s mixed quarterly results. While revenues fell short of market expectations, the company outperformed in earnings, driven by solid waste business resilience. Positive organic revenue growth in collection and disposal, alongside encouraging trends in commercial and special waste volumes, underscore the company’s operational strengths in navigating evolving market dynamics.
A look at Waste Management Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Waste Management, Inc., a leading provider of waste management services in North America, exhibits a mixed outlook based on Smartkarma Smart Scores. With solid momentum and strong growth potential, the company seems poised for substantial long-term advancement. The high momentum score reflects the company’s ability to maintain an upward trend in performance, indicating a positive market sentiment. Additionally, the impressive growth score underscores Waste Management‘s potential for expansion and development within the waste management industry.
However, the company’s scores in value, dividend, and resilience are more moderate, suggesting areas for potential improvement. While not scoring as high in these categories, Waste Management still maintains a sturdy foundation due to its established market presence and diverse customer base. Overall, Waste Management‘s Smart Scores indicate a promising future outlook predominantly driven by its growth prospects and strong momentum in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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