The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Waste Connections met expectations on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded.
Margins contracted across the board.
Waste Connections chalked up revenue of $379.8 million. The six analysts polled by S&P Capital IQ expected revenue of $376.6 million. Sales were 13% higher than the prior-year quarter's $336.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.35. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.35 per share on the same basis. GAAP EPS of $0.34 for Q4 were 6.3% higher than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 42.0%, 100 basis points worse than the prior-year quarter. Operating margin was 19.8%, 60 basis points worse than the prior-year quarter. Net margin was 10.0%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $369.5 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $1.61 billion. The average EPS estimate is $1.62.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 147 members out of 157 rating the stock outperform, and 10 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Waste Connections a green thumbs-up, and one gives 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 $36.07.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.