Waste Management Stock Climbs After Earnings: What's Going On?

Waste Management, Inc. WM shares are trading higher Tuesday after the company posted better-than-expected fourth-quarter results after the bell on Monday.

The Details:

Waste Management posted quarterly adjusted earnings of $1.74 per share which beat the analyst consensus estimate of $1.53 by 13.73% and is a 33.85% increase over earnings of $1.30 per share from the same period last year. 

The company reported quarterly sales of $5.22 billion, beating the analyst consensus estimate of $5.19 billion by 0.44% and representing a 5.71% increase over sales of $4.93 billion year-over-year.

“Our operating and financial results in the second half of 2023 surpassed expectations driven by strong execution on our pricing and operating excellence programs. Our team continues to make progress in optimizing our cost structure, and our investments in people, technology, and assets accelerated margin expansion ahead of plan in the fourth quarter,” said Jim Fish, CEO of Waste Management. 

“During the fourth quarter, our collection and disposal business performance powered our total company adjusted operating EBITDA growth of 15% and record adjusted margin of 29.9%. Our performance in 2023, particularly the momentum built during the second half of the year, positions us well to sustain growth throughout 2024,” Fish added. 

Waste Management expects Total Company adjusted operating EBITDA for 2024 to be in the range of $6.275 billion to $6.425 billion. This represents an increase of about $450 million at the midpoint of the range and includes about $115 million of adjusted operating EBITDA growth from sustainability growth investments.

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WM Price Action: According to Benzinga Pro, Waste Management shares are up 5.33% at $198.30 at the time of publication.

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