Waste Management (NYSE:WM) Announces Earnings Results, Misses Expectations By $0.03 EPS

Key Points

• Waste Management reported $2.15 in quarterly EPS, missing analyst expectations by $0.03, while revenue of $6.85 billion exceeded estimates of $6.81 billion.
• The stock fell $5.71 to $235.31 after the results. WM offers a quarterly dividend of $0.945 per share, equivalent to a 1.6% yield and a 53.54% payout ratio.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $256.06 price target, although some firms recently lowered their targets.

Waste Management (NYSE:WM - Get Free Report) announced its quarterly earnings results on Tuesday. The business services provider reported $2.15 earnings per share for the quarter, missing analysts' consensus estimates of $2.18 by ($0.03), FiscalAI reports. Waste Management had a net margin of 11.11% and a return on equity of 31.68%. The company had revenue of $6.85 billion during the quarter, compared to analysts' expectations of $6.81 billion.

Waste Management Stock Performance

WM traded down $5.71 on Tuesday, hitting $235.31. 2,902,181 shares of the company traded hands, compared to its average volume of 2,197,933. Waste Management has a 12-month low of $194.11 and a 12-month high of $248.13. The company has a 50 day moving average of $216.99 and a 200-day moving average of $224.77. The company has a quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 2.24. The stock has a market capitalization of $94.06 billion, a PE ratio of 33.33, a PEG ratio of 3.06 and a beta of 0.42.

Waste Management Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 11th were paid a dividend of $0.9450 per share. The ex-dividend date of this dividend was Friday, September 11th. This represents a $3.78 annualized dividend and a yield of 1.6%. Waste Management's dividend payout ratio is currently 53.54%.

Insider Buying and Selling at Waste Management

In other news, CAO John Carroll sold 1,365 shares of the business's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $219.90, for a total value of $300,163.50. Following the transaction, the chief accounting officer owned 3,509 shares of the company's stock, valued at approximately $771,629.10. The trade was a 28.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.18% of the company's stock.

Analyst Ratings Changes

Several research firms have recently weighed in on WM. JPMorgan Chase & Co. reduced their target price on Waste Management from $270.00 to $235.00 and set an "overweight" rating for the company in a report on Thursday, October 8th. Barclays raised their price target on Waste Management from $270.00 to $277.00 and gave the stock an "overweight" rating in a research note on Thursday, July 30th. UBS Group boosted their price objective on Waste Management from $265.00 to $270.00 and gave the company a "buy" rating in a research note on Tuesday, August 4th. Citigroup boosted their price objective on Waste Management from $263.00 to $269.00 and gave the company a "buy" rating in a research note on Friday, July 10th. Finally, Morgan Stanley decreased their price objective on Waste Management from $230.00 to $220.00 and set an "equal weight" rating for the company in a report on Tuesday, October 13th. Thirteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $256.06.

Waste Management Company Profile

Waste Management, Inc, doing business as WM NYSE: WM, is an environmental services company that provides waste collection, transportation, disposal, recycling and resource-recovery services. The company serves residential, commercial, industrial and municipal customers through a network of collection operations, transfer stations, landfills, recycling facilities and other environmental infrastructure.

WM's services include curbside and commercial waste collection, construction and demolition debris management, recycling, organics processing and landfill disposal.

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