Waste Connections (NYSE:WCN) Releases Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Waste Connections beat quarterly expectations: EPS came in at $1.58, exceeding the $1.52 consensus by $0.06, while revenue reached $2.64 billion versus estimates of $2.60 billion.
• The stock fell 0.6% to $168.51 despite the earnings beat. Waste Connections has a $42.29 billion market capitalization, a P/E ratio of 40.61, and has traded between $146.89 and $179.74 over the past year.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $198.61, although several brokerages recently adjusted their targets. Two senior vice presidents also sold shares, and insiders collectively own 0.27% of the company.

Waste Connections (NYSE:WCN - Get Free Report) announced its quarterly earnings results on Wednesday. The business services provider reported $1.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.52 by $0.06, FiscalAI reports. Waste Connections had a net margin of 10.86% and a return on equity of 17.31%. The firm had revenue of $2.64 billion for the quarter, compared to the consensus estimate of $2.60 billion.

Waste Connections Trading Down 0.6%

NYSE WCN traded down $0.97 during trading on Wednesday, hitting $168.51. 1,910,787 shares of the company's stock traded hands, compared to its average volume of 1,560,253. The stock has a fifty day moving average of $160.88 and a two-hundred day moving average of $161.40. Waste Connections has a 12-month low of $146.89 and a 12-month high of $179.74. The firm has a market cap of $42.29 billion, a P/E ratio of 40.61, a PEG ratio of 2.91 and a beta of 0.49. The company has a debt-to-equity ratio of 1.17, a current ratio of 0.66 and a quick ratio of 0.66.

Insider Activity

In related news, SVP Robert Cloninger sold 2,811 shares of the stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $171.02, for a total transaction of $480,737.22. Following the completion of the sale, the senior vice president directly owned 11,666 shares in the company, valued at $1,995,119.32. This represents a 19.42% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Philip Rivard sold 2,500 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $166.57, for a total value of $416,425.00. Following the transaction, the senior vice president owned 734 shares in the company, valued at approximately $122,262.38. The trade was a 77.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.27% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on WCN. Citigroup cut their target price on shares of Waste Connections from $182.00 to $175.00 and set a "neutral" rating for the company in a research report on Thursday, October 15th. Wolfe Research started coverage on Waste Connections in a research report on Tuesday, September 15th. They set an "outperform" rating and a $204.00 price target on the stock. Barclays lifted their price target on Waste Connections from $180.00 to $187.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 28th. JPMorgan Chase & Co. cut their price objective on Waste Connections from $195.00 to $180.00 and set an "overweight" rating for the company in a report on Thursday, October 8th. Finally, Scotiabank set a $193.00 price objective on Waste Connections in a research report on Thursday, October 15th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $198.61.

About Waste Connections

Waste Connections, Inc is a North American provider of solid waste collection, transfer, disposal and recycling services. The company serves residential, commercial, industrial and construction customers, offering scheduled and on-demand collection as well as waste management solutions tailored to municipalities and businesses.

Its operations include local collection fleets, transfer stations, recycling and resource-recovery facilities, and landfills. Waste Connections also provides non-hazardous oilfield waste services, including the collection, transportation, treatment and disposal of waste generated by energy-production activities.

Founded in 1997, Waste Connections has grown through a combination of internal development and acquisitions.

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