FY2025 EPS Estimate for Waste Management Lowered by Analyst

Key Points

• William Blair has reduced its FY2025 earnings estimate for Waste Management from $7.77 to $7.56 per share, although they still maintain an "Outperform" rating on the stock.
• Waste Management reported a quarterly earnings of $1.92 per share, exceeding analysts' expectations of $1.89, with a significant revenue increase of 19.0% year-over-year.
• Several research analysts have upgraded Waste Management, with HSBC raising their price target from $210 to $265, reflecting positive market sentiment.

Waste Management, Inc. (NYSE:WM - Free Report) - Research analysts at William Blair dropped their FY2025 earnings per share (EPS) estimates for Waste Management in a report issued on Wednesday, July 30th. William Blair analyst T. Romeo now anticipates that the business services provider will post earnings of $7.56 per share for the year, down from their prior forecast of $7.77. William Blair has a "Outperform" rating on the stock. The consensus estimate for Waste Management's current full-year earnings is $7.70 per share. William Blair also issued estimates for Waste Management's Q1 2026 earnings at $1.83 EPS, Q2 2026 earnings at $2.22 EPS, FY2026 earnings at $8.72 EPS and FY2027 earnings at $9.65 EPS.

Waste Management (NYSE:WM - Get Free Report) last released its quarterly earnings results on Monday, July 28th. The business services provider reported $1.92 earnings per share for the quarter, beating analysts' consensus estimates of $1.89 by $0.03. Waste Management had a return on equity of 34.37% and a net margin of 11.36%. The company had revenue of $6.43 billion for the quarter, compared to analysts' expectations of $6.37 billion. During the same quarter in the previous year, the company posted $1.82 earnings per share. The business's revenue for the quarter was up 19.0% compared to the same quarter last year.

Several other equities research analysts have also recently commented on WM. CIBC boosted their target price on Waste Management from $244.00 to $250.00 and gave the stock a "neutral" rating in a report on Thursday, June 26th. UBS Group lifted their price objective on shares of Waste Management from $260.00 to $265.00 and gave the stock a "neutral" rating in a research report on Wednesday. Citigroup boosted their price target on shares of Waste Management from $260.00 to $271.00 and gave the company a "buy" rating in a report on Thursday, May 1st. BMO Capital Markets boosted their price target on shares of Waste Management from $245.00 to $248.00 and gave the company a "market perform" rating in a report on Wednesday. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $229.00 price objective on shares of Waste Management in a report on Thursday, June 26th. Eight analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and two have issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $254.35.

Waste Management Price Performance

NYSE:WM traded down $0.27 during midday trading on Thursday, hitting $228.89. 1,389,422 shares of the stock were exchanged, compared to its average volume of 1,601,932. Waste Management has a one year low of $199.69 and a one year high of $242.58. The company has a market capitalization of $92.11 billion, a price-to-earnings ratio of 33.96, a P/E/G ratio of 2.82 and a beta of 0.64. The business has a 50-day moving average price of $231.49 and a two-hundred day moving average price of $228.12. The company has a current ratio of 0.86, a quick ratio of 0.79 and a debt-to-equity ratio of 2.51.

Waste Management Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 20th. Stockholders of record on Friday, June 6th were given a dividend of $0.825 per share. The ex-dividend date of this dividend was Friday, June 6th. This represents a $3.30 dividend on an annualized basis and a dividend yield of 1.4%. Waste Management's dividend payout ratio is currently 48.96%.

Insider Transactions at Waste Management

In related news, SVP Rafael Carrasco sold 674 shares of the stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $236.81, for a total value of $159,609.94. Following the completion of the transaction, the senior vice president owned 16,542 shares of the company's stock, valued at $3,917,311.02. This represents a 3.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Devina A. Rankin sold 57,888 shares of the stock in a transaction dated Tuesday, May 27th. The stock was sold at an average price of $237.36, for a total transaction of $13,740,295.68. Following the completion of the transaction, the chief financial officer directly owned 83,934 shares of the company's stock, valued at $19,922,574.24. This trade represents a 40.82% decrease in their position. The disclosure for this sale can be found here. 0.18% of the stock is currently owned by corporate insiders.

Institutional Trading of Waste Management

Several hedge funds have recently modified their holdings of WM. Westend Capital Management LLC boosted its stake in Waste Management by 126.9% in the first quarter. Westend Capital Management LLC now owns 118 shares of the business services provider's stock valued at $27,000 after acquiring an additional 66 shares during the last quarter. West Branch Capital LLC raised its holdings in Waste Management by 69.0% in the first quarter. West Branch Capital LLC now owns 120 shares of the business services provider's stock worth $28,000 after purchasing an additional 49 shares during the period. Transce3nd LLC acquired a new stake in shares of Waste Management during the fourth quarter worth $28,000. Saudi Central Bank acquired a new stake in shares of Waste Management during the first quarter worth $37,000. Finally, GKV Capital Management Co. Inc. acquired a new stake in shares of Waste Management during the first quarter worth $38,000. Institutional investors and hedge funds own 80.40% of the company's stock.

About Waste Management

Waste Management, Inc, through its subsidiaries, engages in the provision of environmental solutions to residential, commercial, industrial, and municipal customers in the United States and Canada. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns and operates transfer stations, as well as owns, develops, and operates landfill facilities that produce landfill gas used as renewable natural gas for generating electricity.