S&P 500 (NYSE:SPY) component Waste Management (NYSE:WM) will unveil its latest earnings on Thursday, July 26, 2012. Waste Management is a provider of integrated waste services in North America. It provides collection, transfer, recycling, disposal and waste-to-energy services.
Waste Management Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 53 cents per share, a rise of 3.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 54 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 53 cents during the last month. Analysts are projecting profit to rise by 2.8% versus last year to $2.20.
Past Earnings Performance: Last quarter, the company missed estimates by 2 cents, coming in at net income of 38 cents per share versus a mean estimate of profit of 40 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 3 cents.
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Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price fell $3.13 (-8.7%), from $36.08 to $32.95. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 27, 2012, when shares rose for 10 straight days, increasing 4.3% (+$1.43) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine straight days, dropping 16.2% (-$5.91) over that span.
A Look Back: In the first quarter, profit fell 8.1% to $171 million (37 cents a share) from $186 million (39 cents a share) the year earlier, missing analyst expectations. Revenue rose 6.2% to $3.29 billion from $3.1 billion.
Wall St. Revenue Expectations: Analysts are projecting a rise of 4.8% in revenue from the year-earlier quarter to $3.51 billion.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 6% in the second quarter of the last fiscal year, 8.9% in the third quarter of the last fiscal year and 6.9% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 5.3% in the fourth quarter of the last fiscal year and then again in the first quarter.
Analyst Ratings: There are mostly holds on the stock with five of seven analysts surveyed giving that rating.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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