A Peek at Waste Management's Future Earnings

Waste Management WM is preparing to release its quarterly earnings on Monday, 2024-10-28. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Waste Management to report an earnings per share (EPS) of $1.89.

Anticipation surrounds Waste Management's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

In the previous earnings release, the company missed EPS by $0.01, leading to a 8.03% drop in the share price the following trading session.

Here's a look at Waste Management's past performance and the resulting price change:

Analyst Opinions on Waste Management

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Waste Management.

The consensus rating for Waste Management is Neutral, derived from 1 analyst ratings. An average one-year price target of $220.0 implies a potential 5.31% upside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of Republic Servs, Rollins and Clean Harbors, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• As per analysts' assessments, Republic Servs is favoring an Neutral trajectory, with an average 1-year price target of $214.33, suggesting a potential 2.59% upside.
• The consensus among analysts is an Outperform trajectory for Rollins, with an average 1-year price target of $55.0, indicating a potential 73.67% downside.
• The prevailing sentiment among analysts is an Outperform trajectory for Clean Harbors, with an average 1-year price target of $265.57, implying a potential 27.12% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Republic Servs, Rollins and Clean Harbors, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Waste Management ranks in the middle for revenue growth among its peers. It leads in gross profit margin. The company also has a higher return on equity compared to its peers.

Discovering Waste Management: A Closer Look

WM ranks as the largest integrated provider of traditional solid waste services in the United States, operating 263 active landfills and about 332 transfer stations. The company serves residential, commercial, and industrial end markets and is also a leading recycler in North America.

Key Indicators: Waste Management's Financial Health

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Positive Revenue Trend: Examining Waste Management's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.53% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Waste Management's net margin is impressive, surpassing industry averages. With a net margin of 12.59%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Waste Management's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 9.35%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Waste Management's ROA stands out, surpassing industry averages. With an impressive ROA of 2.04%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Waste Management's debt-to-equity ratio stands notably higher than the industry average, reaching 2.25. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Waste Management visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.