Waste management services provider Waste Management (NYSE: WM) will be reporting results this Monday afternoon. Here’s what to expect.
Waste Management missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $6.02 billion, up 16.7% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates.
Is Waste Management a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Waste Management’s revenue to grow 17.8% year on year to $6.36 billion, improving from the 5.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.89 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 11 downward revisions over the last 30 days (we track 16 analysts). Waste Management has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Waste Management’s peers in the environmental and facilities services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Waste Connections delivered year-on-year revenue growth of 7.1%, beating analysts’ expectations by 0.7%, and Rollins reported revenues up 12.1%, topping estimates by 1.1%. Waste Connections traded up 2.2% following the results while Rollins was also up 5.2%.
Read our full analysis of Waste Connections’s results here and Rollins’s results here.
There has been positive sentiment among investors in the environmental and facilities services segment, with share prices up 6.7% on average over the last month. Waste Management’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $252.57 (compared to the current share price of $229.65).
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