Waste Management Q2 Earnings Meet Estimates, Rise Y/Y

Waste Management Inc. WM reported second-quarter 2024 results, wherein earnings met the Zacks Consensus Estimate, while revenues missed the same.

WM's adjusted earnings per share were $1.8, which increased 20.5% on a year-over-year basis. Total revenues of $5.4 billion missed the consensus estimate by a slight margin but increased 5.5% from the year-ago quarter.

Thestock has gained 26.6% in the past year, outperforming 22.9% and 22.6% growth of the industry it belongs to and the Zacks S&P 500 Composite, respectively.

Quarterly Numbers in Detail

The Collection segment recorded revenues of $4.2 billion, rising 4% from the year-ago quarter and surpassing our estimate of $4 billion. The Landfill segment's top line grew 2.2% year over year to $1.3 billion and met our estimate. Total revenues in the Transfer segment increased 5.6% to $618 million and outpaced our expectation of $604.4 million. The Recycling segment's revenues rose 20.6% to $475 million and beat our expectation of $416.2 million. The figures are before the alignment of intercompany adjustment.

The adjusted operating EBITDA was $1.6 billion, which met our estimate and increased 10.3% from the year-ago quarter. The adjusted operating EBITDA margin increased 130 basis points to 30% from the year-ago quarter and beat our estimate of 28.7%.

Balance Sheet & Cash Flow

Waste Management exited the second quarter of 2024 with cash and cash equivalents of $172 million compared with $322 million at the end of the prior quarter. The long-term debt (less current portion) was $16.5 billion compared with $15.8 billion at the end of the prior quarter.

WM generated $1.2 billion in cash from operating activities in the reported quarter, while capital expenditure was $667 million. The free cash flow was $530 million. In the second quarter of 2024, $608 million in cash dividends was distributed to shareholders. The company's share repurchases amounted to $262 million.

2024 Outlook

For 2024, the adjusted operating EBITDA is expected to be $6.375-$6.525 billion. The free cash flow is estimated between $2 and $2.15.

Currently, WM carries a Zacks Rank #2 (Buy).

Earnings Snapshot of Some Business Services Stock

Fiserv, Inc. reported mixed second-quarter 2024 results.

FI's adjusted earnings per share (excluding 60 cents from non-recurring items) of $2.1 outpaced the consensus mark by 1.9% and increased 17.7% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by a slight margin but rose on a year-over-year basis.

IQVIA Holdings Analytics Inc. IQV reported impressive second-quarter 2024 results.

Adjusted earnings (excluding 67 cents from non-recurring items) were $2.6 per share, outpacing the Zacks Consensus Estimate by 2.3% and increasing 2.4% on a year-over-year basis. Total revenues of $3.8 billion surpassed the consensus estimate marginally and rose 2.3% from the year-ago quarter.

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