Waste Connections, Inc. Earnings Cheat Sheet: Another Quarter of Rising Profit

Waste Connections, Inc. (NASDAQ:WCN) reported its results for the second quarter. Waste Connections, Inc. is an integrated solid waste services Company that provides solid waste collection, transfer, disposal and recycling services in mostly secondary markets in the Western and Southern U.S.

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Waste Connections Earnings Cheat Sheet for the Second Quarter

Results: Net income for Waste Connections, Inc. rose to $44.4 million (39 cents per share) vs. $30.4 million (26 cents per share) in the same quarter a year earlier. This marks a rise of 46.1% from the year earlier quarter.

Revenue: Rose 18.1% to $390.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: WCN beat the mean analyst estimate of 38 cents per share. Analysts were expecting revenue of $382.8 million.

Quoting Management: “2011 continues to play out well for us. Core pricing, increasing disposal volumes and record recycling commodity values once again contributed to solid results in the quarter. These factors, together with better than expected contribution from recent acquisitions, enabled us to exceed the upper end of our outlook. Adjusted operating income before depreciation and amortization* as a percentage of revenue in the second quarter expanded 30 basis points over the prior year period despite a 100 basis point increase in fuel expense as a percentage of revenue, and adjusted EPS* increased more than 20%,” said Ronald J. Mittelstaedt, Chairman and Chief Executive Officer.

Key Stats:

The company has now seen net income rise in four straight quarters. In the first quarter, net income rose 32.5% while the figure climbed 55.4% in the fourth quarter of the last fiscal year and 20% in the third quarter of the last fiscal year from the year earlier.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by one cent in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 7.8% to $331.5 million in the first quarter. The figure rose 8.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 9.4% in the third quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: Waste Management, Inc. (NYSE:WM), Republic Services, Inc. (NYSE:RSG), Casella Waste Systems Inc. (NASDAQ:CWST), WCA Waste Corporation (NASDAQ:WCAA), Perma-Fix Environmental Services, Inc. (NASDAQ:PESI), IESI BFC Ltd (NYSE:BIN), Avalon Holdings Corp. (AMEX:AWX), Industrial Services of America, Inc. (NASDAQ:IDSA), Stericycle, Inc. (NASDAQ:SRCL), and GreenGold Ray Energies, Inc. (GRYE).

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(Source: Xignite Financials)