What You Need to Know Ahead of Waste Management's Earnings Release

Waste Management, Inc. (WM), headquartered in Houston, Texas, provides comprehensive waste management and environmental services in North America. With a market cap of $85.63 billion, the company offers collection, recycling, and disposal solutions to residential, commercial, industrial, and municipal customers. Waste Management is set to release its Q3 earnings after the market closes on Monday, Oct. 28.

Ahead of the event, analysts expect WM to report a profit of $1.86 per share, up 14.1% from $1.63 in the year-ago quarter. The company has met or surpassed Wall Street's earnings estimates in the last four quarters.

Its adjusted earnings of $1.82 per share for the last quarter matched the consensus estimate. Strong pricing and operational efficiency drove Waste Management Inc.'s Q2 results.

For fiscal 2024, analysts expect WM to report EPS of $7.24, up 17% from $6.19 in fiscal 2023. 

WM stock is up 19.2% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 22.9% gains and the Industrial Select Sector SPDR Fund's (XLI) 22.2% returns over the same time frame.

Strong fundamentals, including high operating margins from technology, strategic acquisitions like Stericycle, effective pricing, and advancements in automation and recycling fuel Waste Management's success. On Jul. 24, WM shares closed down marginally after reporting its Q2 results. The company’s revenue was $5.40 billion, falling short of Wall Street forecasts of $5.41 billion.

The consensus opinion on WM stock is moderately optimistic, with an overall “Moderate Buy” rating. Of the 20 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 10 suggest a “Hold.” WM's average analyst price target is $225.37, indicating a potential upside of 5.6% from the current levels. 

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.