Waste management company Waste Connections (NYSE:WCN) will be announcing earnings results this Wednesday after the bell. Here’s what investors should know.
Waste Connections beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $2.46 billion, up 5.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a decent beat of analysts’ adjusted operating income estimates.
Is Waste Connections a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Waste Connections’s revenue to grow 4.9% year on year to $2.37 billion, slowing from the 11% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.27 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Waste Connections has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.8% on average.
Looking at Waste Connections’s peers in the environmental and facilities services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Waste Management delivered year-on-year revenue growth of 7.1%, missing analysts’ expectations by 1.3%, and Veralto reported revenues up 3.8%, falling short of estimates by 0.5%. Waste Management traded down 3.7% following the results while Veralto was also down 6.2%.
Read our full analysis of Waste Management’s results here and Veralto’s results here.
There has been positive sentiment among investors in the environmental and facilities services segment, with share prices up 8.2% on average over the last month. Waste Connections is up 3.4% during the same time and is heading into earnings with an average analyst price target of $204.25 (compared to the current share price of $171.82).
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