S&P 500 (NYSE:SPY) component Waste Management, Inc. (NYSE:WM) will unveil its latest earnings on Thursday, July 28, 2011. Waste Management, Inc. is a provider of integrated waste services in North America. It provides collection, transfer, recycling, disposal and waste-to-energy services.
Waste Management, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 55 cents per share, a rise of 1.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 57 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 55 cents during the last month. For the year, analysts are projecting profit of $2.25 per share, a rise of 5.1% from last year.
Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported net income of 39 cents per share versus a mean estimate of profit of 41 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by 5 cents.
Wall St. Revenue Expectations: On average, analysts predict $3.34 billion in revenue this quarter, a rise of 5.7% from the year ago quarter. Analysts are forecasting total revenue of $13.12 billion for the year, a rise of 4.8% from last year’s revenue of $12.52 billion.
Analyst Ratings: Analysts seem relatively indifferent about Waste Management with five of nine analysts surveyed maintaining a hold rating.
The increase in profit in the first quarter breaks a streak of three consecutive quarters of year-over-year profit decreases. In the first quarter, net income rose 2.2% from the year earlier, while the figure dropped 10.8% in the fourth quarter of the last fiscal year, 11.9% in the third quarter of the last fiscal year and 0.4% in the second quarter of the last fiscal year.
Revenue has risen the past four quarters. Revenue increased 5.7% to $3.1 billion in first quarter. The figure rose 6% in the fourth quarter of the last fiscal year from the year earlier, climbed 7% in the third quarter of the last fiscal year from the year-ago quarter and 7% in the second quarter of the last fiscal year.
Competitors to Watch: Republic Services, Inc. (NYSE:RSG), Waste Connections, Inc. (NYSE:WCN), Stericycle, Inc. (NASDAQ:SRCL), WCA Waste Corporation (NASDAQ:WCAA), Casella Waste Systems Inc. (NASDAQ:CWST), Perma-Fix Environmental Services, Inc. (NASDAQ:PESI), Clean Harbors, Inc. (NYSE:CLH), Veolia Environnement (NYSE:VE), US Ecology Inc. (NASDAQ:ECOL), and Avalon Holdings Corp. (AMEX:AWX).
Stock Price Performance: During April 27, 2011 to July 22, 2011, the stock price had fallen $3.14 (-8%) from $39.11 to $35.97. The stock price saw one of its best stretches over the last year between September 9, 2010 and September 22, 2010 when shares rose for 10-straight days, rising 5.4% (+$1.77) over that span. It saw one of its worst periods between December 31, 2010 and January 11, 2011 when shares fell for eight-straight days, falling 2.3% (-82 cents) over that span. Shares are down 25 cents (-0.7%) year to date.
(Source: Xignite Financials)