The 10-second takeaway
For the quarter ended March 31 (Q1), Waste Management beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted.
Margins dropped across the board.
Waste Management booked revenue of $3.30 billion. The seven analysts polled by S&P Capital IQ anticipated sales of $3.20 billion on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $3.10 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.38. The seven earnings estimates compiled by S&P Capital IQ forecast $0.41 per share on the same basis. GAAP EPS of $0.37 for Q1 were 5.1% lower than the prior-year quarter's $0.39 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 34.3%, 140 basis points worse than the prior-year quarter. Operating margin was 12.3%, 150 basis points worse than the prior-year quarter. Net margin was 5.2%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.49 billion. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $13.78 billion. The average EPS estimate is $2.26.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,570 members out of 2,625 rating the stock outperform, and 55 members rating it underperform. Among 618 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 606 give Waste Management a green thumbs-up, and 12 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 $33.43.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Waste Management. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Waste Management to My Watchlist.
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. The Motley Fool owns shares of Waste Management. Motley Fool newsletter services have recommended buying shares of Waste Management. Motley Fool newsletter services have recommended creating a write covered strangle position in Waste Management. 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.