Waste Management, Inc. (NYSE:WM) is set to unveil its third-quarter 2023 financial results on October 24, after the market closes. The company has established a track record of delivering consistent earnings results, with a mixed record of beating and missing the Zacks Consensus Estimate over the past four quarters.
Here’s a breakdown of what to expect for Waste Management’s upcoming Q3 earnings:
Q3 Revenue Expectations
The Zacks Consensus Estimate for WM’s third-quarter revenue is currently projected at $5.26 billion, reflecting a 3.7% increase compared to the previous year’s actual figure. This growth is attributed to the company’s recurring revenue streams and its strong pricing strategies, which are expected to drive higher revenues.
Q3 Earnings per Share (EPS)
The consensus estimate for Waste Management’s Q3 earnings per share stands at $1.61, representing a 3.2% year-over-year increase. This growth is likely due to the company’s disciplined pricing strategies and an optimized cost structure.
Segmental Expectations
- Collection and Disposal: Revenues for this segment are estimated to be approximately $3.54 billion in the third quarter, up 4.5% compared to the same period in the previous year. Strong organic growth within this segment is expected to drive the revenue increase.
- Landfill: Revenues from the Landfill segment are projected to be around $1.22 billion, reflecting a 2.3% increase compared to the previous year. This growth is attributed to expected increases in bookings.
- Transfer: The Transfer segment is expected to generate revenues of approximately $597.3 million, reflecting a 6.3% increase compared to the previous year.
- Recycling: The Recycling segment is expected to report revenues of $395.4 million, marking a 5.9% decrease compared to the previous year. This decline may be due to various factors impacting recycling markets.
Adjusted EBITDA Expectations
The estimated adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the third quarter is approximately $1.54 billion, reflecting a 6.2% growth compared to the same period in the previous year.
Waste Management is anticipated to maintain its growth trajectory in Q3, driven by its strong pricing strategies, recurring revenue streams, and optimized cost structure. However, the Recycling segment may face some challenges due to market conditions.
Investors will closely watch Waste Management’s Q3 results to assess its performance and prospects in the waste management industry. Please note that the company’s actual results may vary from these estimates, and it’s important to consider other factors and guidance provided by the company when interpreting the results.
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