Waste management services provider Waste Management (NYSE: WM) will be reporting earnings tomorrow after the bell. Here’s what to look for.
Waste Management beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $5.89 billion, up 13% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income and EPS estimates.
Is Waste Management a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Waste Management’s revenue to grow 18.3% year on year to $6.11 billion, improving from the 5.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.59 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Waste Management has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Waste Management’s peers in the environmental and facilities services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Waste Connections delivered year-on-year revenue growth of 7.5%, meeting analysts’ expectations, and Republic Services reported revenues up 3.8%, falling short of estimates by 0.9%. Waste Connections’s stock price was unchanged after the results, while Republic Services was up 1.3%.
Read our full analysis of Waste Connections’s results here and Republic Services’s results here.
Investors in the environmental and facilities services segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Waste Management is down 1.2% during the same time and is heading into earnings with an average analyst price target of $242.22 (compared to the current share price of $228.80).
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