Waste Management Inc. Earnings: The Profit Streak Continues

S&P 500 (NYSE:SPY) component Waste Management Inc. (NYSE:WM) reported its results for the fourth quarter. Waste Management is a provider of integrated waste services in North America. It provides collection, transfer, recycling, disposal and waste-to-energy services.

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Waste Management Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Waste Management Inc. fell to $266 million (58 cents per share) vs. $281 million (59 cents per share) a year earlier. This is a decline of 5.3% from the year earlier quarter.

Revenue: Rose 7% to $3.41 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Waste Management Inc. reported adjusted net income of 63 cents per share. By that measure, the company beat the mean estimate of 60 cents per share. Analysts were expecting revenue of $3.35 billion.

Quoting Management: David P. Steiner, President and Chief Executive Officer of Waste Management, commented, “We had a very good fourth quarter. Our core collection, landfill, and transfer station businesses performed well. We continued to see volumes improve sequentially and we had internal revenue growth from yield of 1.4%. We also saw accelerated improvement in our cost reduction initiatives.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 8.9% to $3.52 billion in the third quarter. The figure rose 6% in the second quarter from the year earlier and climbed 5.7% in the first quarter from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of 63 cents versus a mean estimate of net income of 61 cents per share.

Net income has dropped 1.2% year over year on average across the last five quarters. Performance was hurt by a 10.8% decline in the fourth quarter of the last fiscal year from the year earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 46 cents per share, down from 47 cents ninety days ago. For the fiscal year, the average estimate has moved down from $2.13 a share to $2.11 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com