- Waste Management‘s adjusted operating EBITDA margin for the first quarter surpassed estimates, reaching 28.5% compared to the estimated 28.3%.
- The company’s adjusted earnings per share (EPS) dropped to $1.67 from $1.75 the previous year.
- Actual EPS for the quarter was $1.58, down from $1.75 year-over-year (y/y).
- Operating revenue for the quarter was reported at $6.02 billion, marking a 17% increase y/y.
- Adjusted operating EBITDA logged a 12% rise y/y, reaching $1.72 billion.
- Capital expenditure increased to $703.0 million from $668 million y/y.
- Free cash flow saw a decline of 33% y/y, totaling $475 million.
- Gross collection revenue grew by 4.7% y/y to $4.25 billion.
- Gross landfill revenue increased by 1.4% y/y, amounting to $1.19 billion.
- Gross transfer revenue rose by 5.7% y/y, reaching $592 million.
- Gross recycling revenue experienced a 6.7% increase y/y, totaling $465 million.
- The company is on track to achieve targeted synergies of $80 to $100 million in 2025.
- Analyst recommendations include 14 buy, 9 hold, and 1 sell ratings.
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Waste Management on Smartkarma
Analysts on Smartkarma, like Baptista Research, are bullish on Waste Management, Inc. (WM) following the company’s impressive third-quarter 2024 earnings report. Waste Management has shown substantial operational and financial improvements, achieving a 30% operating EBITDA margin – its highest in history. The company’s strategic focus on top-line growth strategies and cost management has positioned it well in its markets, driving growth and efficiency. Baptista Research highlights Waste Management‘s success in operational efficiency, disciplined pricing, and sustainability investments, leading to a record margin of 30.5% and a year-over-year increase of 90 basis points in operating EBITDA.
Baptista Research delves into Waste Management‘s healthcare solutions and operational drivers, indicating optimism for the company’s future performance. With a keen eye on factors influencing the company’s stock price, analysts are leveraging a Discounted Cash Flow (DCF) methodology to independently evaluate Waste Management‘s valuation. The research underscores Waste Management‘s strong performance and strategic initiatives as key growth enablers, setting a positive trajectory for the company’s financial outlook in the upcoming periods.
A look at Waste Management Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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. is poised for a solid long-term outlook based on the Smartkarma Smart Scores. With a strong momentum score of 5, the company is showing positive market momentum which bodes well for its future performance. Additionally, Waste Management scores high in growth with a score of 4, indicating the company’s potential for expansion and increasing profitability over time. This suggests that Waste Management is well-positioned for sustainable growth in the waste management industry.
Furthermore, Waste Management demonstrates resilience with a score of 3, showcasing its ability to withstand economic fluctuations and challenges in the market. A dividend score of 3 indicates that the company offers a moderate yet stable dividend for investors. While the value score of 2 is lower, Waste Management‘s overall outlook remains positive, particularly considering its key strengths in growth and momentum. Overall, Waste Management, Inc. presents itself as a robust player in waste management services, catering to a wide range of customers in North America.
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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