Waste Management (WM) Q3 Earnings Top, Revenues Lag Estimates
Zacks Investment Research | Oct 22, 2019 09:54PM ET
Waste Management Inc. (NYSE:WM) reported mixed third-quarter 2019 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues lagged the same.
Adjusted earnings per share of $1.19 beat the consensus mark by 3 cents and were higher than the year-ago quarter by 4 cents. Total revenues of $3.96 billion missed the consensus estimate by $31 million but increased 3.8% year over year.
The top line benefited from strong yield and volume growth in the company’s collection and disposal business, which contributed $198 million of incremental revenues.
Internal revenue growth from yield for collection and disposal operations was 2.6% compared with 2.5% in the year-ago quarter. Collection and disposal business internal revenue growth from volume was 3.3% in third-quarter 2019. Total company internal revenue growth from volume, which includes recycling and other ancillary businesses, was 2.6%.
So far this year, shares of Waste Management have gained 31.4% compared with 24% rise of the industry it belongs to and 18.3% rise of the Zacks S&P 500 composite.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $2.63 billion, up 5.6% from the prior-year quarter’s figure. Landfill segment’s top line increased 7.2% year over year to $993 million. Total revenues in the Transfer segment were up 5.8% to $471 million. Recycling segment revenues declined 27.3% to $245 million. Other businesses’ revenues totaled $469 million, up 9.1% year over year.
Adjusted operating EBITDA of $1.14 billion increased 3.1% from the year-ago quarter’s level. Adjusted operating EBITDA margin decreased to 28.8% from 28.9% in the year-ago quarter.
Operating income came in at $734 million compared with $699 million in the year-ago quarter. Operating income margin increased to 18.5% from 18.3% in the year-ago quarter.
Waste Management, Inc. Price, Consensus and EPS Surprise
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