Waste Management's (WM) Q3 Earnings Beat, Revenues Miss
Waste Management Inc. WM reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same.
Adjusted earnings per share of $1.63 surpassed the Zacks Consensus Estimate by 1.2% and improved 4.5% year over year. Total revenues of $5.2 billion missed the consensus estimate by 1.2% but increased 2.4% year over year.
Quarterly Numbers in Detail
The Collection segment recorded revenues of $3.51 billion, up 4.8% from the prior-year quarter’s figure but missed our estimate of $3.54 billion. The Landfill segment’s top line grew 5% year over year to $1.26 billion, beating our estimate of $1.22 billion. Total revenues in the Transfer segment were up 5.7% to $594 million in comparison to our expectation of $597.3 million.
Waste Management, Inc. Price, Consensus and EPS Surprise
Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. Quote
The Recycling segment’s revenues dropped 12.9% to $366 million and missed our estimate of $395.4 million. Other businesses’ revenues totaled $678 million, up 10.4% year over year.
Adjusted operating EBITDA of $1.54 billion, which matched our estimate, increased 3.5% from the year-ago quarter’s level. Adjusted operating EBITDA margin increased 100 basis points to 29.6% from the prior-year quarter.
Balance Sheet and Cash Flow
Waste Management exited third-quarter 2023 with cash and cash equivalents of $150 million compared with $144 million at the end of the prior quarter. Long-term debt (less current portion) was $15.13 billion compared with $14.86 billion at the end of the prior quarter.
WM generated $1.26 billion in cash from operating activities in the reported quarter, while capital expenditures were $493 million. Free cash flow was $612 million.
In the third quarter of 2023, a total of $653 million was distributed to shareholders, comprising $283 million in cash dividends and $370 million in share repurchases.
Reaffirming 2023 Outlook
Total revenue growth is expected to be between 3.25% and 4.25%, down from the previous guidance of 4% and 5.5%.
Adjusted operating EBITDA is expected to be in the range of $5.775-$5.875 billion, which decreased from the prior guidance of $5.825-$5.975 billion.
Free cash flow is estimated to be between $2.575 billion and $2.675 billion, which is lower than the prior guidance of $2.6-$2.7 billion.
Earnings Snapshot
The Interpublic Group of Companies, Inc.’s IPG third-quarter 2023 earnings and revenues missed the Zacks Consensus Estimate. Adjusted earnings (considering 7 cents from non-recurring items) were 70 cents per share, which lagged the consensus estimate by 6.7% but increased 11.1% on a year-over-year basis. Net revenues of $2.31 billion missed the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc.EFX reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1% but increasing 1.7% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.7% and increased 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc.FI reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share (excluding 40 cents from non-recurring items) of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year. Organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
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Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
Waste Management, Inc. (WM) : Free Stock Analysis Report
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