- Waste Management Inc WM reported second-quarter FY22 revenue growth of 12.3% year-over-year to $5.03 billion, beating the consensus of $4.84 billion.
- Adjusted EPS improved to $1.44 compared to $1.27 in 2Q21, above the consensus of $1.40.
- Adjusted operating income increased 11.6% Y/Y to $907 million, and margin declined slightly by 12 bps to 18%.
- Adjusted operating EBITDA increased by 7.8% Y/Y to $1.42 billion, and margin contracted by 120 bps to 28.2%.
- Adjusted operating expenses as a percentage of revenue increased 130 bps to 62.4%.
- The core price for the quarter was 7.5% compared to 6.2% in 2Q21.
- Total company volumes increased 1.6% Y/Y, and collection and disposal volumes increased 2.3%.
- Total company and collection and disposal volumes increased by 9.2%, mainly driven by a strong recovery from the pandemic.
- Waste Management generated cash from operating activities year-to-date of $2.31 billion, compared to $2.16 billion a year ago. Free cash flow was $1.35 billion.
- During the quarter, $539 million was returned to shareholders, including $269 million in cash dividends and $270 million allocated to share repurchases.
- FY22 Outlook: Waste Management expects revenue growth of ~10%, an increase of 400 basis points from the midpoint of prior guidance.
- Combined internal revenue growth from yield and volume in the collection and disposal business is expected to approach 8.5%.
- It expects Adjusted operating EBITDA of $5.5 billion - $5.6 billion in 2022, projected adjusted operating EBITDA margin at the midpoint of its guidance range at 28.1%.
- WM expects Free cash flow at the upper end of the prior outlook of $2.6 billion to $2.7 billion. It expects to complete $300 million - $400 million of acquisitions and repurchase an additional $980 million of its common stock in 2022.
- Price Action: WM shares traded higher by 1.98% at $158.09 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
