The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Waste Management met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.
Gross margins contracted, operating margins grew, net margins contracted.
Waste Management reported revenue of $3.46 billion. The eight analysts polled by S&P Capital IQ foresaw a top line of $3.50 billion on the same basis. GAAP reported sales were 1.7% lower than the prior-year quarter's $3.52 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.61. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.46 for Q3 were 21% lower than the prior-year quarter's $0.58 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.6%, 20 basis points worse than the prior-year quarter. Operating margin was 16.4%, 40 basis points better than the prior-year quarter. Net margin was 6.2%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.41 billion. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $13.70 billion. The average EPS estimate is $2.11.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,616 members out of 2,673 rating the stock outperform, and 57 members rating it underperform. Among 641 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 628 give Waste Management a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Waste Management is hold, with an average price target of $33.14.
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