The 10-second takeaway
For the quarter ended June 30 (Q2), Waste Management met expectations on revenues and missed slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share grew. GAAP earnings per share increased significantly.
Gross margins shrank, operating margins grew, net margins increased.
Waste Management logged revenue of $3.53 billion. The nine analysts polled by S&P Capital IQ expected sales of $3.55 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.54. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.55 per share. Non-GAAP EPS of $0.54 for Q2 were 3.8% higher than the prior-year quarter's $0.52 per share. GAAP EPS of $0.52 for Q2 were 16% higher than the prior-year quarter's $0.45 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 34.5%, 20 basis points worse than the prior-year quarter. Operating margin was 14.8%, 30 basis points better than the prior-year quarter. Net margin was 6.9%, 90 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.59 billion. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $14.03 billion. The average EPS estimate is $2.15.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,622 members out of 2,682 rating the stock outperform, and 60 members rating it underperform. Among 701 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 691 give Waste Management a green thumbs-up, and 10 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 $40.00.
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