Waste Connections Earnings: Everything You Must Know Now

Waste Connections Inc. (NYSE:WCN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Waste Connections Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 15.63% to $0.37 in the quarter versus EPS of $0.32 in the year-earlier quarter.

Revenue: Rose 19.52% to $449.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Waste Connections Inc. reported adjusted EPS income of $0.37 per share. By that measure, the company beat the mean analyst estimate of $0.33. It beat the average revenue estimate of $449.45 million.

Quoting Management: “2013 is off to a great start as continued strong pricing growth, improving landfill volumes and ramping E&P activity drove better than expected margins and free cash flow in the period. Adjusted EBITDA as a percentage of revenue in the first quarter was 32.5%, or about 50 basis points above our expectations. More importantly, adjusted free cash flow, a hallmark of our strategy, exceeded $100 million and was 22.3% of revenue in the period,” said Ronald J. Mittelstaedt, Chief Executive Officer and Chairman. “We remain well positioned to benefit from both improving fundamentals within our business and upside from potential acquisitions and newly permitted E&P waste facilities.”

Key Stats (on next page)…

Revenue increased 0.25% from $448.8 million in the previous quarter. EPS were the same at $0.37 as the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.48 to a profit $0.45. For the current year, the average estimate has moved down from a profit of $1.88 to a profit of $1.78 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)