Waste Management (WM) Q1 Earnings & Revenues Beat, Rise Y/Y
Waste Management Inc.WM reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year. Total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.
Over the past year, shares of Waste Management have gained 15.4% against 17.6% decline of the industry it belongs to. The Zacks S&P 500 composite has risen 1.8% in the said time frame.
Image Source: Zacks Investment Research
Let’s check out the numbers in detail.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $3.08 billion, up 11.1% from the prior-year quarter’s figure. The Landfill segment’s top line grew 14.9% year over year to $1.05 billion. Total revenues in the Transfer segment were up 4.5% to $486 million. Recycling segment revenues increased 32.5% to $453 million. Other businesses’ revenues totaled $575 million, up 20.5% year over year.
Adjusted operating EBITDA of $1.29 billion increased 10.7% from the year-ago quarter’s level. Adjusted operating EBITDA margin fell to 27.6% from 28.2% in the prior-year quarter.
Adjusted operating income came in at $803 million, up 16.5% from the year-ago quarter. Adjusted operating income margin rose to 17.2% from 16.8% in the year-ago quarter.
Waste Management, Inc. Price, Consensus and EPS Surprise
Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. Quote
Waste Management exited first-quarter 2022 with cash and cash equivalents of $155 million compared with $118 million at the end of the prior quarter. Long-term debt was $13.1 billion compared with $12.7 billion at the end of the prior quarter.
The company generated $1.26 billion of cash from operating activities in the reported quarter while capital expenditures were $371 million. Free cash flow was $845 million.
During the reported quarter, the company returned $525 million to shareholders, which includes $275 million through cash dividends and $250 million through share repurchases.
Currently, Waste Management carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some better-ranked stocks in the broader Business Services sector that investors may consider are Cross Country Healthcare CCRN, NV5 Global NVEE and Clean Harbors CLH, each sporting a Zacks Rank #1.
Cross Country Healthcare has a trailing four-quarter earnings surprise of 41.5%, on average.
Cross Country Healthcare’s shares have surged 52.1% in the past year. The company has a long-term earnings growth of 6.5%.
NV5 Global has an expected earnings growth rate of 6.1% for the current year. It delivered a trailing four-quarter earnings surprise of 22.2%, on average.
NV5 Global’s shares have surged 30.6% in the past year. The company has a long-term earnings growth of 14.2%.
Clean Harbors has an expected earnings growth rate of 17% for the current year. The company has a trailing four-quarter earnings surprise of 43.2%, on average.
Clean Harbors’ shares have surged 17.6% in the past year.
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
Waste Management, Inc. (WM) : Free Stock Analysis Report
Clean Harbors, Inc. (CLH) : Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report
NV5 Global, Inc. (NVEE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
