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Waste Management (WM) to Post Q3 Earnings: What's in Store?

Zacks Equity Research

Waste Management, Inc. WM is scheduled to report third-quarter 2019 results on Oct 23, before the opening bell.

So far this year, shares of Waste Management have gained 31.5% compared with 24.7% rise of the industry it belongs to and 18.3% increase of the Zacks S&P 500 composite.

 

Collection and Disposal Business to Boost Top Line

Solid yield and volume growth in Waste Management’s collection and disposal business is likely to have partially offset the weakness in its recycling line of business. This is expected to get reflected in Waste Management’s third-quarter 2019 revenues, the Zacks Consensus Estimate for which is pegged at $4 billion. The estimated figure indicates growth of 4.6% from the year-ago quarter's reported tally. In second-quarter 2019, revenues of $3.95 billion increased 5.5% year over year.

Earnings Expectations

Improved operating results are likely to have boosted Waste Management’s bottom line. The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at $1.15, flat year over year. In second-quarter 2019, adjusted earnings of $1.11 came ahead of the year-ago quarter by 10 cents.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Waste Management this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Waste Management has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

Waste Management, Inc. Price and EPS Surprise

 

Waste Management, Inc. Price and EPS Surprise

Waste Management, Inc. price-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 third-quarter 2019 earnings:

S&P Global SPGI has an Earnings ESP of +1.72% and a Zacks Rank #2. The company is slated to report results on Oct 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

TransUnion TRU has an Earnings ESP of +1.13% and a Zacks Rank #3. The company is slated to release results on Oct 22.

Verisk VRSK has an Earnings ESP of +2.22% and a Zacks Rank #3. The company is slated to report results on Oct 29.

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S&P Global Inc. (SPGI) : Free Stock Analysis Report
 
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Waste Management, Inc. (WM) : Free Stock Analysis Report
 
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