Waste Connections (NYSE:WCN) Issues Quarterly Earnings Results

Key Points

• Waste Connections beat expectations in its quarterly report, posting earnings of $1.50 per share versus the $1.35 consensus and revenue of $2.56 billion versus the expected $2.51 billion.
• The stock was slightly lower after the report, trading down 0.3% to $167.91, even as the company showed solid profitability with a 16.49% return on equity and a 10.97% net margin.
• Analyst sentiment remains constructive, with a consensus rating of “Moderate Buy” and an average price target of $202.00, while CEO Ronald J. Mittelstaedt recently bought 50,000 shares and a VP sold 7,500 shares.

Waste Connections (NYSE:WCN - Get Free Report) issued its quarterly earnings data on Wednesday. The business services provider reported $1.50 earnings per share for the quarter, topping the consensus estimate of $1.35 by $0.15, FiscalAI reports. The company had revenue of $2.56 billion for the quarter, compared to analysts' expectations of $2.51 billion. Waste Connections had a return on equity of 16.49% and a net margin of 10.97%.

Waste Connections Trading Down 0.3%

Shares of NYSE WCN traded down $0.52 during trading hours on Wednesday, reaching $167.91. The stock had a trading volume of 1,529,802 shares, compared to its average volume of 1,643,540. The company has a current ratio of 0.69, a quick ratio of 0.69 and a debt-to-equity ratio of 1.13. The firm has a market cap of $42.37 billion, a price-to-earnings ratio of 40.95, a P/E/G ratio of 3.00 and a beta of 0.49. The business's fifty day moving average price is $160.53 and its two-hundred day moving average price is $163.34. Waste Connections has a 52-week low of $146.89 and a 52-week high of $191.91.

Insider Buying and Selling at Waste Connections

In other news, CEO Ronald J. Mittelstaedt purchased 50,000 shares of the company's stock in a transaction dated Tuesday, May 12th. The shares were acquired at an average price of $152.24 per share, with a total value of $7,612,000.00. Following the transaction, the chief executive officer owned 301,017 shares of the company's stock, valued at $45,826,828.08. This represents a 19.92% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Patrick James Shea sold 7,500 shares of the firm's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $156.26, for a total value of $1,171,950.00. Following the transaction, the vice president owned 19,737 shares in the company, valued at approximately $3,084,103.62. This represents a 27.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 17,605 shares of company stock worth $2,822,923 over the last quarter. Insiders own 0.27% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in WCN. Measured Wealth Private Client Group LLC bought a new stake in shares of Waste Connections in the 3rd quarter valued at about $26,000. Transamerica Financial Advisors LLC increased its holdings in Waste Connections by 346.2% during the fourth quarter. Transamerica Financial Advisors LLC now owns 174 shares of the business services provider's stock valued at $31,000 after buying an additional 135 shares during the period. Birchwood Financial Partners Inc. bought a new position in Waste Connections in the fourth quarter worth approximately $39,000. Larson Financial Group LLC raised its stake in Waste Connections by 89.5% in the third quarter. Larson Financial Group LLC now owns 360 shares of the business services provider's stock worth $63,000 after buying an additional 170 shares in the last quarter. Finally, J.Safra Asset Management Corp purchased a new stake in Waste Connections during the fourth quarter worth $70,000. 86.09% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have recently commented on WCN. The Goldman Sachs Group reaffirmed a "buy" rating and set a $211.00 target price on shares of Waste Connections in a research note on Thursday, April 23rd. JPMorgan Chase & Co. dropped their price objective on Waste Connections from $210.00 to $195.00 and set an "overweight" rating for the company in a report on Monday, July 13th. BMO Capital Markets reaffirmed an "outperform" rating and issued a $208.00 price objective (up from $206.00) on shares of Waste Connections in a research report on Friday, April 24th. Citigroup increased their target price on Waste Connections from $180.00 to $182.00 and gave the stock a "neutral" rating in a research note on Thursday, July 9th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $218.00 target price (up from $210.00) on shares of Waste Connections in a research report on Friday, April 24th. Three 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 stock. According to MarketBeat.com, Waste Connections has an average rating of "Moderate Buy" and a consensus price target of $202.00.

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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