The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Waste Connections met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew. GAAP earnings per share shrank.
Gross margins grew, operating margins dropped, net margins shrank.
Waste Connections logged revenue of $448.8 million. The seven analysts polled by S&P Capital IQ looked for sales of $445.0 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $379.8 million.
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 $0.37. The eight earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. Non-GAAP EPS of $0.37 for Q4 were 5.7% higher than the prior-year quarter's $0.35 per share. GAAP EPS of $0.29 for Q4 were 12% lower than the prior-year quarter's $0.33 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 42.5%, 50 basis points better than the prior-year quarter. Operating margin was 18.1%, 190 basis points worse than the prior-year quarter. Net margin was 8.0%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $464.3 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $1.95 billion. The average EPS estimate is $1.88.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 145 members out of 155 rating the stock outperform, and 10 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Waste Connections a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Waste Connections is outperform, with an average price target of $36.94.
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