Waste management services provider Waste Management (NYSE: WM) will be reporting results this Tuesday after market hours. Here’s what you need to know.
Waste Management met analysts’ revenue expectations last quarter, reporting revenues of $6.68 billion, up 4% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates but full-year revenue guidance slightly missing analysts’ expectations.
Is Waste Management a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Waste Management’s revenue to grow 5.7% year on year, slowing from the 14.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Waste Management has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Waste Management’s peers in the environmental and facilities services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Waste Connections delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 1.2%, and Rollins reported revenues up 6.2%, falling short of estimates by 1.7%. Waste Connections traded up 9.9% following the results while Rollins was also up 5.6%.
Read our full analysis of Waste Connections’s results here and Rollins’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the environmental and facilities services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.9% on average over the last month. Waste Management is up 15.4% during the same time and is heading into earnings with an average analyst price target of $253.52 (compared to the current share price of $238.15).
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