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Waste Management (WM) to Post Q1 Earnings: What's in Store?

Zacks Equity Research

Waste Management, Inc. WM is scheduled to report first-quarter 2019 results on Apr 25, before the bell.

So far this year, shares of Waste Management have gained 18.9% compared with 18.6% rise of the industry it belongs to and 15.4% rise of the Zacks S&P 500 Composite.

 

Let’s check out the expectations in detail.

Collection and Disposal Business to Boost the Top Line

The Zacks Consensus Estimate for first-quarter 2019 revenues is pegged at $3.67 billion, indicating year-over-year growth of 4.5%. The top line should benefit from strong yield and volume growth in the company’s collection and disposal business.

In fourth-quarter 2018, revenues of $3.84 billion increased 5.2% year over year.

Bottom Line Expectations

The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at 91 cents, same as the year-ago reported figure. The bottom line is expected to be favorably impacted by improved operating results in the company’s traditional solid waste business.

In fourth-quarter 2018, adjusted earnings of $1.13 improved 32.9% year over year.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Waste Management has a Zacks Rank #3 and an Earnings ESP of -1.83%, a combination that makes surprise prediction difficult.

Waste Management, Inc. Price and EPS Surprise

 

Waste Management, Inc. Price and EPS Surprise | Waste Management, Inc. Quote

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in first-quarter 2019:

SailPoint Technologies SAIL has an Earnings ESP of +100.00% and a Zacks Rank #1. The company is scheduled to report results on May 8. You can see the complete list of today’s Zacks #1 Rank stocks here.

Total System Services TSS has an Earnings ESP of +1.44% and a Zacks Rank #3. The company is slated to release results on Apr 23.

EVERTEC EVTC has an Earnings ESP of +2.74% and a Zacks Rank #3. The company is scheduled to report results on May 1.

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