U.S. markets closed

Waste Management (WM) to Post Q4 Earnings: What's in Store?

Zacks Equity Research

Waste Management, Inc. WM is scheduled to report fourth-quarter 2019 results on Feb 13, before the bell.

The company’s shares have gained 29.7% over the past year, compared with 22.6% growth of the industry it belongs to.

Collection and Disposal Likely to Boost Top Line

Increased yield in collection and disposal business, higher collection and landfill volume growth, and acquisitions are likely to have offset the weakness in the company’s recycling line of business. This is expected to get reflected in the to-be-reported quarter’s revenues, the Zacks Consensus Estimate for which is pegged at $3.95 billion, indicating growth of 2.8% from the year-ago quarter's reported figure. In third-quarter 2019, revenues of $3.96 billion increased 3.8% year over year.

Waste Management, Inc. Revenue (TTM)

Waste Management, Inc. Revenue (TTM)

Waste Management, Inc. revenue-ttm | Waste Management, Inc. Quote

Earnings Expectations

Improved operating results, mainly in the collection and disposal business, are likely to have boosted Waste Management’s bottom line. The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.17, indicating 3.5% year-over-year growth. In third-quarter 2019, adjusted earnings of $1.19 came ahead of the year-ago figure by 3.5%.

What Our Model Says

Our proven model predicts an earnings beat for Waste Management this time around. 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. 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 +2.90% and a Zacks Rank #2.

Others Stocks to Consider

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

SailPoint Technologies SAIL has an Earnings ESP of +4.92% and a Zacks Rank #2. The company is slated to report results on Feb 24. You can see the complete list of today’s Zacks #1 Rank stocks here.

Republic Services RSG has an Earnings ESP of +2.67% and a Zacks Rank #2. The company is slated to release results on Feb 13.

Fidelity National Information Services FIS has an Earnings ESP of +0.30% and a Zacks Rank #2. The company is slated to release results on Feb 13.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
 
Waste Management, Inc. (WM) : Free Stock Analysis Report
 
Republic Services, Inc. (RSG) : Free Stock Analysis Report
 
SailPoint Technologies Holdings, Inc. (SAIL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.