Waste Management Stock Soars On Q1 Beat

Waste Management Inc WM reported first-quarter FY22 operating revenue growth of 13.4% year-over-year to $4.66 billion, beating the consensus of $4.44 billion.
Adjusted EPS improved to $1.29 compared to $1.06 in 1Q21, beating the consensus of $1.15.
Operating Revenues by Line of Business: Total collection $3.08 billion (+11.2% Y/Y), Landfill $1.05 billion (+14.8% Y/Y), Transfer $486 million (+4.5% Y/Y), Recycling $453 million (+32.5% Y/Y) and Others $575 million (+20.6% Y/Y).
Adjusted operating income increased by 16.6% Y/Y to $803 million, and the margin expanded by 50 bps to 17.2%.
Core price for the quarter was 7.3% compared to 3.4% last year.
Total Company volumes improved 3.6%, or 3.2% on a workday adjusted basis, compared to a decline of 3.3% in 1Q21.
Adjusted operating EBITDA increased by 10.7% Y/Y to $1.28 billion, and margin contracted by 60 bps to 27.6%.
Waste Management generated cash from operating activities of $1.26 billion in Q1, compared to $1.12 billion a year ago. Free cash flow was $845 million.
SG&A expenses were 10.5% of revenue compared to 11.1% in 1Q21.
The company returned $525 million to shareholders during the quarter, including $275 million of cash dividends and $250 million of share repurchases.
Price Action: WM shares traded higher by 5.62% at $164.72 on the last check Tuesday.