- Adjusted EPS: $1.82, missed the estimate of $1.83 but increased from last year’s $1.51.
- Reported EPS: $1.69, up from $1.51 year-over-year (y/y).
- Operating Revenue: $5.40 billion, a 5.5% increase y/y, near the estimate of $5.43 billion.
- Adjusted Operating EBITDA: $1.62 billion, up by 10% y/y, just below the estimate of $1.64 billion.
- Adjusted Operating EBITDA Margin: 30%, improved from 28.7% y/y, close to the estimate of 30.1%.
- Free Cash Flow: $530 million, decreased by 2.8% y/y but exceeded the estimate of $467.7 million.
Company Outlook:
- The company is on track to meet the increased full-year outlook provided in April.
- Full-year outlook for adjusted operating EBITDA: $6.375 to $6.525 billion.
- Full-year outlook for free cash flow, including sustainability growth investments: $2.0 to $2.15 billion.
Management Comments:
- “Based on our great performance to start 2024 and our confidence in the strength of our business, after the first quarter we raised our full-year outlook for adjusted operating EBITDA and free cash flow by $100 million.”
- “Our adjusted operating EBITDA increased by 10.3%, and margin expanded by 130 basis points, resulting in a quarterly margin of 30.0% for the first time ever.”
Analyst Ratings: 12 buys, 10 holds, 1 sell.
Waste Management on Smartkarma
Analyst coverage of Waste Management on Smartkarma reveals positive sentiment from Baptista Research. In their report titled “Waste Management Inc.: A Competitive Edge Through Exclusive Landfill Assets & 5 Key Growth Drivers,” the analysts highlight the company’s strong performance, with a 15% increase in fourth-quarter operating EBITDA. This growth was driven by operational excellence in collection and disposal, resulting in margin expansion and exceeding full-year guidance. The report emphasizes the company’s momentum in cost-effective measures and disciplined pricing strategies.
Another report by Baptista Research, “Waste Management Inc.: Is There A Negative Impact Of Inflation and The Changing Dynamic Of Sustainability-Related Capital Expenditures? – Major Drivers,” echoes a bullish outlook. Despite concerns over inflation and economic uncertainties, Waste Management‘s performance remains strong, with a 15% EBITDA growth in Q1 2024. The analysts point out the company’s resilience in the face of challenges, reaffirming original expectations. This coverage underscores Waste Management‘s strategic positioning and financial robustness in the waste management industry.
A look at Waste Management Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Waste Management has a promising long-term outlook. With strong scores in Growth and Momentum, the company is positioned well for continued expansion and market performance. Waste Management‘s focus on development and its ability to capitalize on market trends are key strengths that bode well for its future prospects.
Waste Management, Inc. is a leading provider of waste management services in North America. The company offers a range of services from waste collection to recycling and operates waste-to-energy facilities. With a diverse customer base across municipal, commercial, industrial, and residential sectors, Waste Management is well-positioned to continue its growth trajectory in the waste management industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
