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Waste Connections (WCN) Q4 Earnings, Revenues Beat, Rise Y/Y

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·4 min read
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Waste Connections, Inc. WCN reported solid fourth-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate.

Adjusted earnings of 83 cents per share beat the Zacks Consensus Estimate by 2.5% and increased 22.1% year over year. Revenues of $1.62 billion topped the consensus mark by 2.5% and rose 16.2% year over year.

Acquisitions contributed $79.4 million to revenues in the reported quarter.

Over the past year, shares of Waste Connections have gained 20% against a 13.2% decline of the industry it belongs to.

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Revenues by Segment

The Solid Waste Collection segment’s revenues increased 14.3% year over year to $1.17 billion.

The Solid Waste Disposal and Transfer segment’s revenues increased 7.9% from the year-ago quarter’s level to $316.17 million.

The Solid Waste Recycling segment’s revenues surged more than 100% year over year to $69.67 million.

The Intermodal and Other segment’s revenues increased 12.4% to $37.51 million.

The E&P Waste Treatment, Recovery and Disposal segment’s revenues soared 34.5% from the year-ago quarter’s level to $34.33 million.

Operating Results

Adjusted EBITDA in the reported quarter was $495.4 million, up 16.1% from the year-ago quarter’s level. Adjusted EBITDA margin came in at 30.5%, flat with the year-ago quarter.

Operating income totaled $249.32 million, up 26.5% from the prior-year quarter.

Waste Connections, Inc. Price, Consensus and EPS Surprise

Waste Connections, Inc. Price, Consensus and EPS Surprise
Waste Connections, Inc. Price, Consensus and EPS Surprise

Waste Connections, Inc. price-consensus-eps-surprise-chart | Waste Connections, Inc. Quote

Balance Sheet and Cash Flow

Waste Connections exited fourth-quarter 2021 with cash and cash equivalents of $147.44 million compared with $339.48 million at the end of the prior quarter. Long-term debt was $5.04 billion compared with $4.87 billion at the end of the last-reported quarter.

The company generated $428.27 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $183.76 million. Capital expenditures totaled $264.84 million.

WCN paid out dividends worth $59.4 million in the reported quarter.

2022 Guidance

For the full year, Waste Connections expects revenues to be around $6.875 billion. The current Zacks Consensus Estimate of $6.73 billion lies below the guidance.

Adjusted EBITDA is expected to be at around $2.145 billion. Capital expenditures are estimated at around $850 million. Net cash from operating activities is estimated at around $2 billion. Adjusted free cash flow is estimated at around $1.15 billion.

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.

Performance of Other Business Services Companies

Robert Half International RHI delivered impressive fourth-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.

Robert Half’s quarterly earnings of $1.51 per share beat the consensus mark by 5.6% and rose 79.8% year over year.

Robert Half’s revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis.

Automatic Data Processing ADP reported better-than-expected second-quarter fiscal 2022 results.

ADP’s adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

ADP’s total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year on a reported basis as well as on an organic constant-currency basis.

Rollins ROL reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.

Rollins’ adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.

Rollins’ revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.


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