Waste Connections (NYSE:WCN) Issues Earnings Results, Misses Estimates By $0.13 EPS

Key Points

• Waste Connections reported $1.23 EPS for the quarter versus analysts' $1.36 estimate, missing by $0.13; the company posted a return on equity of 16.25% and a net margin of 11.37%.
• Shares fell $1.38 to $156.55 on the news, with a market cap of about $39.96 billion, a P/E of 37.54, and a 52-week range of $154.90–$199.78.
• The company paid a $0.35 quarterly dividend (annualized $1.40, 0.9% yield, 33.6% payout ratio), and analysts maintain an average Buy rating with a $202.81 average price target.

Waste Connections (NYSE:WCN - Get Free Report) posted its quarterly earnings results on Wednesday. The business services provider reported $1.23 earnings per share for the quarter, missing analysts' consensus estimates of $1.36 by ($0.13), Zacks reports. Waste Connections had a return on equity of 16.25% and a net margin of 11.37%.

Waste Connections Stock Performance

Shares of WCN stock traded down $1.38 during trading on Wednesday, hitting $156.55. The company's stock had a trading volume of 2,178,485 shares, compared to its average volume of 1,624,907. The company has a market cap of $39.96 billion, a PE ratio of 37.54, a P/E/G ratio of 2.83 and a beta of 0.61. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 1.07. The business has a fifty day moving average of $164.12 and a 200-day moving average of $168.98. Waste Connections has a 52 week low of $154.90 and a 52 week high of $199.78.

Waste Connections Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 12th. Stockholders of record on Wednesday, February 25th were issued a $0.35 dividend. The ex-dividend date of this dividend was Wednesday, February 25th. This represents a $1.40 annualized dividend and a dividend yield of 0.9%. Waste Connections's dividend payout ratio is currently 33.57%.

Hedge Funds Weigh In On Waste Connections

Institutional investors have recently modified their holdings of the business. Measured Wealth Private Client Group LLC bought a new position in shares of Waste Connections in the third quarter valued at approximately $26,000. Transamerica Financial Advisors LLC grew its holdings in shares of Waste Connections by 346.2% in the fourth quarter. Transamerica Financial Advisors LLC now owns 174 shares of the business services provider's stock valued at $31,000 after acquiring an additional 135 shares in the last quarter. Birchwood Financial Partners Inc. bought a new position in shares of Waste Connections in the fourth quarter valued at approximately $39,000. Larson Financial Group LLC grew its holdings in shares of Waste Connections by 89.5% in the third quarter. Larson Financial Group LLC now owns 360 shares of the business services provider's stock valued at $63,000 after acquiring an additional 170 shares in the last quarter. Finally, J.Safra Asset Management Corp bought a new position in shares of Waste Connections in the fourth quarter valued at approximately $70,000. 86.09% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages have commented on WCN. Wolfe Research began coverage on Waste Connections in a report on Friday, March 13th. They set an "outperform" rating and a $199.00 price objective for the company. Citigroup reissued a "neutral" rating and set a $183.00 price objective (down from $196.00) on shares of Waste Connections in a report on Friday, January 16th. Morgan Stanley set a $205.00 price objective on Waste Connections and gave the stock an "overweight" rating in a report on Friday, February 13th. Stifel Nicolaus set a $213.00 price objective on Waste Connections and gave the stock a "buy" rating in a report on Friday, February 13th. Finally, BNP Paribas Exane began coverage on Waste Connections in a report on Tuesday, January 6th. They set an "outperform" rating for the company. Four analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, Waste Connections currently has an average rating of "Buy" and an average price target of $202.81.

Waste Connections Company Profile

Waste Connections NYSE: WCN is a North American integrated waste services company that provides a range of solid waste and environmental services to municipal, commercial, industrial and residential customers. The company offers collection, transportation, transfer, disposal and recycling services, and operates an extensive network of transfer stations and disposal facilities. Waste Connections positions itself as a provider of infrastructure-driven waste solutions across many regions of the United States and Canada.

The company's operating activities include routine curbside and commercial collection, roll-off and container services, operation of landfills and transfer stations, and recycling and resource recovery programs.

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