Waste Connections Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Growth

Waste Connections Inc. (NYSE:WCN) reported its results for the third quarter. Waste Connections 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 United States.

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Waste Connections Earnings Cheat Sheet for the Third Quarter

Results: Net income for the waste management company rose to $46.3 million (41 cents per share) vs. $41 million (35 cents per share) in the same quarter a year earlier. This marks a rise of 13% from the year earlier quarter.

Revenue: Rose 16.8% to $404 million from the year earlier quarter.

Actual vs. Wall St. Expectations: WCN reported adjusted net income of 42 cents per share. By that measure, the company beat the mean estimate of 40 cents per share. Analysts were expecting revenue of $399.2 million.

Quoting Management: “We once again exceeded the upper end of our revenue and margin expectations due primarily to continuing strength in pricing, special waste activity and recycling commodity values. The percentage year-over-year increase in adjusted operating income before depreciation and amortization again surpassed revenue growth in the third quarter despite an approximate 35% increase in fuel expense, and adjusted EPS increased 20% over the prior year period,” said Ronald J. Mittelstaedt, Chairman and Chief Executive Officer. “Our strong operating performance, free cash flow generation and capital position enabled us to increase our dividend 20%, while retaining ample flexibility to fund our growth strategy and continuing share repurchases.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 46.1% and in the first quarter, the figure rose 32.5%.

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

Revenue has risen the past four quarters. Revenue increased 18.1% to $390.2 million in the second quarter. The figure rose 7.8% in the first quarter from the year earlier and climbed 8.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 37 cents per share to 36 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved up from $1.45 a share to $1.47 over the last ninety days.

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)