Waste Management (WM) Tops Q4 EPS by 4c

Waste Management (NYSE: WM) reported Q4 EPS of $1.19, $0.04 better than the analyst estimate of $1.15. Revenue for the quarter came in at $3.85 billion versus the consensus estimate of $3.97 billion.

2020 OUTLOOK:

Profitability

• Adjusted operating EBITDA is expected to be between $4.56 and $4.66 billion for the full year.(b)

Revenue Growth

• Core price is expected to be 4.0% or greater. Internal revenue growth from yield on the collection and disposal business is expected to be about 2.5%.
• Internal revenue growth from volume is expected to be about 1.5%.

Free Cash Flow & Capital Allocation

• Free cash flow is projected to be between $2.15 and $2.25 billion, exclusive of transaction and advisory costs incurred for the acquisition of Advanced Disposal.(b)
• Capital expenditures are expected to be in the range of $1.7 to $1.8 billion.
• The Board of Directors has indicated its intention to increase the dividend by $0.13 per share to $2.18 on an annual basis for an approximate annual cost of $920 million. This represents the 17th consecutive year of increases in the Company’s per share dividend. The Board must separately approve and declare each dividend.
• The Company has $1.32 billion remaining on its existing Board of Directors’ authorization to repurchase common stock. Given the strength of the Company’s free cash flow performance in 2019 and outlook for 2020, the Company expects to restart its share repurchase program in the first quarter.

For earnings history and earnings-related data on Waste Management (WM) click here.

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