Waste Connections (NYSE:WCN) Trading Up 7% After Strong Earnings

Key Points

• Shares rose about 7% after Waste Connections reported Q1 EPS of $1.23 (vs. $1.19 consensus), though revenue was $2.33B—below some ~$2.50B estimates—and net income declined year‑over‑year.
• Management flagged strong operating performance with an adjusted EBITDA margin of about 32.5%, and the board declared a quarterly cash dividend of $0.35 per share (annualized $1.40, yield 0.8%).
• Analysts remain largely positive with a consensus Buy rating and an average price target of $202.81, while institutional ownership is high at roughly 86%.

Waste Connections, Inc. (NYSE:WCN - Get Free Report) shot up 7% during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $166.87 and last traded at $167.3880. 482,609 shares changed hands during mid-day trading, a decline of 70% from the average session volume of 1,610,204 shares. The stock had previously closed at $156.51.

The business services provider reported $1.23 EPS for the quarter, topping analysts' consensus estimates of $1.19 by $0.04. The company had revenue of $2.33 billion during the quarter, compared to analysts' expectations of $2.50 billion. Waste Connections had a net margin of 11.37% and a return on equity of 16.25%. Waste Connections's revenue for the quarter was up 6.4% on a year-over-year basis. During the same period last year, the business earned $1.13 EPS.

Waste Connections Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 21st. Stockholders of record on Wednesday, May 6th will be paid a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Wednesday, May 6th. Waste Connections's payout ratio is presently 33.57%.

Key Headlines Impacting Waste Connections

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

• Positive Sentiment: Q1 EPS beat estimates — Waste Connections reported $1.23 EPS versus the $1.19 consensus, showing year‑over‑year EPS growth and helping reassure investors on profitability. Zacks: WCN Surpasses Q1 Earnings
• Positive Sentiment: Strong adjusted EBITDA and margins — Management said revenue and adjusted EBITDA came in above expectations and reported an adjusted EBITDA margin (management highlighted 32.5%), which supports operating leverage and free cash flow potential. BusinessWire: Q1 2026 Results
• Positive Sentiment: Dividend declared — Board approved a $0.35 quarterly cash dividend (payable May 21; record date May 6), signaling confidence in cash flow and returning capital to shareholders. That can support investor sentiment and income‑oriented demand. BusinessWire: Dividend Announcement
• Neutral Sentiment: Mixed coverage on revenue vs. estimates — some outlets and the company called revenue above expectations while others note differences versus analyst models; the split has produced both supportive and cautious analyst takes. Seeking Alpha: Revenue/Profit Coverage
• Negative Sentiment: Revenue short of some analyst consensus — reported revenue was $2.33B versus a ~$2.50B consensus cited by some services, which tempers the EPS beat and raises short‑term growth concerns. MarketBeat: Q1 Summary
• Negative Sentiment: Net income declined year‑over‑year — reported profit (about US$219.3M) was down from US$241.5M a year ago, a datapoint investors will watch for margin pressure or one‑time impacts. MSN: Q1 Profit Decline

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on WCN. Stifel Nicolaus set a $213.00 target price on Waste Connections and gave the stock a "buy" rating in a research note on Friday, February 13th. BNP Paribas Exane assumed coverage on Waste Connections in a report on Tuesday, January 6th. They issued an "outperform" rating on the stock. JPMorgan Chase & Co. raised their price objective on Waste Connections from $187.00 to $195.00 and gave the stock an "overweight" rating in a research note on Friday, April 10th. UBS Group set a $205.00 target price on Waste Connections in a report on Monday, January 5th. Finally, Citigroup reiterated a "neutral" rating and issued a $183.00 target price (down from $196.00) on shares of Waste Connections in a research report on Friday, January 16th. Four investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of $202.81.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of WCN. CIBC Asset Management Inc boosted its stake in shares of Waste Connections by 55.7% during the 3rd quarter. CIBC Asset Management Inc now owns 1,991,112 shares of the business services provider's stock worth $350,603,000 after acquiring an additional 711,990 shares in the last quarter. Cidel Asset Management Inc. increased its position in shares of Waste Connections by 19.5% in the third quarter. Cidel Asset Management Inc. now owns 163,675 shares of the business services provider's stock valued at $28,780,000 after buying an additional 26,684 shares in the last quarter. Procyon Advisors LLC purchased a new stake in shares of Waste Connections in the fourth quarter valued at approximately $1,908,000. Fisher Funds Management LTD raised its stake in shares of Waste Connections by 51.2% during the 3rd quarter. Fisher Funds Management LTD now owns 88,336 shares of the business services provider's stock worth $15,529,000 after buying an additional 29,925 shares during the period. Finally, Thrivent Financial for Lutherans raised its stake in shares of Waste Connections by 770.4% during the 3rd quarter. Thrivent Financial for Lutherans now owns 57,519 shares of the business services provider's stock worth $10,112,000 after buying an additional 50,911 shares during the period. 86.09% of the stock is currently owned by hedge funds and other institutional investors.

Waste Connections Stock Up 6.9%

The business has a 50-day moving average price of $163.82 and a 200-day moving average price of $168.89. The stock has a market cap of $42.71 billion, a PE ratio of 40.03, a price-to-earnings-growth ratio of 2.79 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.

About Waste Connections

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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