The 10-second takeaway
For the quarter ended June 30 (Q2), Waste Management met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped.
Margins contracted across the board.
Waste Management recorded revenue of $3.46 billion. The seven analysts polled by S&P Capital IQ expected revenue of $3.51 billion on the same basis. GAAP reported sales were 3.3% higher than the prior-year quarter's $3.35 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 $0.52. The eight earnings estimates compiled by S&P Capital IQ forecast $0.53 per share. GAAP EPS of $0.45 for Q2 were 10% lower than the prior-year quarter's $0.50 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 34.7%, 140 basis points worse than the prior-year quarter. Operating margin was 14.5%, 60 basis points worse than the prior-year quarter. Net margin was 6.0%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.59 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $13.88 billion. The average EPS estimate is $2.21.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,616 members out of 2,671 rating the stock outperform, and 55 members rating it underperform. Among 635 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 623 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 $34.33.
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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. The Motley Fool owns shares of Waste Management. Motley Fool newsletter services recommend 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.