Waste Management Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Waste Management, Inc. (NYSE:WM) will unveil its latest earnings on Thursday, October 27, 2011. Waste Management 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 profit of 61 cents per share, a rise of 1.7% 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 66 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 61 cents during the last month. Analysts are projecting profit to rise by 0% versus last year to $2.14.

Past Earnings Performance: The company is looking to top analyst estimates this quarter after trailing for the two previous quarters. Last quarter, it missed estimates by reporting net income of 51 cents per share against an estimate of profit of 55 cents per share. The quarter before that, it missed expectations by 2 cents.

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Wall St. Revenue Expectations: On average, analysts predict $3.41 billion in revenue this quarter, a rise of 5.2% from the year ago quarter. Analysts are forecasting total revenue of $13.24 billion for the year, a rise of 5.8% from last year’s revenue of $12.52 billion.

Analyst Ratings: Analysts seem relatively indifferent about Waste Management with five of seven analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit fell 3.7% to $237 million (50 cents a share) from $246 million (51 cents a share) the year earlier, missing analyst expectations. Revenue rose 6% to $3.35 billion from $3.16 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 5.7% in the first quarter from the year earlier, climbed 6% in the fourth quarter of the last fiscal year from the year-ago quarter and 7% in the third quarter of the last fiscal year.

The decrease in profit in the second quarter came after net income rose in the previous quarter. In the first quarter, net income rose 2.2%.

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 September 23, 2011 to October 21, 2011, the stock price had risen $3.10 (10.1%) from $30.81 to $33.91. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011 when shares rose for nine-straight days, rising 3.3% (+$1.19) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine-straight days, falling 16.2% (-$5.85) over that span. Shares are down $1.93 (-5.4%) year to date.

(Source: Xignite Financials)

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