Scotiabank Predicts Stronger Earnings for Waste Management

Key Points

• Scotiabank raised Waste Management’s FY2026 EPS estimate to $8.08 from $8.05 and forecasts FY2027 EPS of $9.17. The firm maintains a “Sector Perform” rating and a $260 price target, versus a $8.16 consensus FY2026 EPS estimate.
• Waste Management’s latest quarterly results beat expectations, with EPS of $1.81 versus the $1.75 consensus, while revenue rose 3.5% year over year to $6.23 billion but fell short of estimates.
• The stock carries a “Moderate Buy” consensus rating with an average price target of $256.74, and the company pays a quarterly dividend of $0.945, equivalent to a 1.6% annual yield.

Waste Management, Inc. (NYSE:WM - Free Report) - Equities research analysts at Scotiabank raised their FY2026 earnings per share (EPS) estimates for shares of Waste Management in a report released on Thursday, July 23rd. Scotiabank analyst K. Gupta now expects that the business services provider will post earnings of $8.08 per share for the year, up from their previous forecast of $8.05. Scotiabank currently has a "Sector Perform" rating and a $260.00 target price on the stock. The consensus estimate for Waste Management's current full-year earnings is $8.16 per share. Scotiabank also issued estimates for Waste Management's FY2027 earnings at $9.17 EPS.

Waste Management (NYSE:WM - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The business services provider reported $1.81 earnings per share for the quarter, topping analysts' consensus estimates of $1.75 by $0.06. The business had revenue of $6.23 billion for the quarter, compared to analysts' expectations of $6.28 billion. Waste Management had a return on equity of 31.90% and a net margin of 10.99%.The company's revenue was up 3.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.67 EPS.

WM has been the subject of several other research reports. Wells Fargo & Company cut their price target on Waste Management from $273.00 to $268.00 and set an "overweight" rating for the company in a research note on Thursday, April 30th. Robert W. Baird raised their target price on shares of Waste Management from $248.00 to $260.00 and gave the company an "outperform" rating in a report on Thursday, April 16th. Barclays lifted their target price on shares of Waste Management from $266.00 to $270.00 and gave the stock an "overweight" rating in a research report on Thursday, April 30th. JPMorgan Chase & Co. increased their price target on shares of Waste Management from $265.00 to $270.00 and gave the company an "overweight" rating in a research report on Friday, April 10th. Finally, Weiss Ratings cut shares of Waste Management from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, June 11th. Fifteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $256.74.

Waste Management Stock Up 0.0%

WM opened at $238.86 on Monday. The company has a debt-to-equity ratio of 2.22, a quick ratio of 0.89 and a current ratio of 0.93. The company has a market cap of $95.92 billion, a price-to-earnings ratio of 34.57, a PEG ratio of 2.90 and a beta of 0.44. Waste Management has a one year low of $194.11 and a one year high of $248.13. The business's fifty day moving average is $224.17 and its two-hundred day moving average is $227.13.

Waste Management Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Friday, June 5th were issued a $0.945 dividend. This represents a $3.78 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date was Friday, June 5th. Waste Management's dividend payout ratio is 54.70%.

Institutional Investors Weigh In On Waste Management

A number of hedge funds and other institutional investors have recently modified their holdings of WM. Broadway Wealth Solutions Inc. grew its stake in Waste Management by 2.8% in the 4th quarter. Broadway Wealth Solutions Inc. now owns 1,588 shares of the business services provider's stock worth $349,000 after acquiring an additional 44 shares during the period. Bey Douglas LLC lifted its stake in shares of Waste Management by 3.7% during the 4th quarter. Bey Douglas LLC now owns 1,233 shares of the business services provider's stock worth $271,000 after purchasing an additional 44 shares during the period. San Luis Wealth Advisors LLC boosted its holdings in shares of Waste Management by 2.4% during the fourth quarter. San Luis Wealth Advisors LLC now owns 1,922 shares of the business services provider's stock worth $422,000 after purchasing an additional 45 shares during the last quarter. Birch Hill Investment Advisors LLC grew its position in shares of Waste Management by 0.7% in the fourth quarter. Birch Hill Investment Advisors LLC now owns 6,104 shares of the business services provider's stock valued at $1,341,000 after purchasing an additional 45 shares during the period. Finally, Cassaday & Co Wealth Management LLC grew its position in shares of Waste Management by 1.9% in the fourth quarter. Cassaday & Co Wealth Management LLC now owns 2,398 shares of the business services provider's stock valued at $527,000 after purchasing an additional 45 shares during the period. 80.40% of the stock is currently owned by hedge funds and other institutional investors.

Waste Management News Roundup

Here are the key news stories impacting Waste Management this week:

• Positive Sentiment: Analysts expect WM to report higher revenue and earnings, supported by stronger collection and disposal pricing plus a sharp increase in renewable energy sales. WM Is Set to Report Q2 Earnings: Here's What Investors Should Know
• Positive Sentiment: WM was highlighted as a stock that can benefit from inflation because its contracts allow it to pass rising costs through to customers, which supports margins and earnings resilience. 2 Stocks Built to Thrive If Inflation Refuses to Fade
• Positive Sentiment: The company was also cited as one of several waste firms using AI to improve efficiency and expand margins, reinforcing the long-term growth narrative. 3 Waste Stocks Turning AI Investments Into Growth
• Neutral Sentiment: Several articles published ahead of earnings focused on Wall Street estimates and key operating metrics, suggesting investors are mainly waiting for the actual Q2 report before making a bigger move. Curious about Waste Management (WM) Q2 Performance? Explore Wall Street Estimates for Key Metrics
• Neutral Sentiment: One broad S&P 500 article mentioned WM among companies worth investigating, but it did not provide a specific new catalyst for the stock. 1 S&P 500 Stock Worth Investigating and 2 Facing Challenges

About Waste Management

Waste Management, Inc NYSE: WM is a leading provider of integrated waste management and environmental services in North America. The company offers end-to-end solutions that span collection, transfer, disposal and recycling, along with landfill operations and related infrastructure. Headquartered in Houston, Texas, Waste Management serves a broad customer base that includes residential, commercial, industrial and municipal clients.

Core services include curbside and commercial waste collection, roll-off and temporary container services, materials recovery and recycling, and engineered landfill disposal.

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