Waste Connections (NYSE: WCN) reported Q4 EPS of $0.63, $0.03 better than the analyst estimate of $0.60. Revenue for the quarter came in at $1.26 billion versus the consensus estimate of $1.23 billion.

"2018 finished on a high note, as financial results for the fourth quarter exceeded expectations on better than expected solid waste organic growth, E&P waste activity and acquisition contribution. We are also extremely pleased with our results for the full year as adjusted EBITDA* as a percent of revenue expanded 30 basis points, and adjusted free cash flow* increased 15.2%. Increases in both solid waste pricing growth, which was up 130 basis points year-over-year to 4.5%, and E&P waste activity enabled us to overcome the precipitous decline in recycled commodity values and certain cost pressures noted during the year," said Ronald J. Mittelstaedt, Chairman and Chief Executive Officer. "The strength of these results continues to reflect the benefits of our purposeful culture, differentiated strategy and disciplined execution."

Mr. Mittelstaedt added, "2018 was also noteworthy for the continuing elevated pace of acquisition activity. Our acquisition of American Disposal in the fourth quarter brought total annualized acquired revenue to more than $360 million for the year, with rollover revenue contribution of approximately $200 million in 2019. Along with continued strong pricing growth, this already positions us for high single digit revenue growth and another 30 basis points adjusted EBITDA* margin expansion in 2019, with any growth in solid waste volumes, E&P waste activity or additional acquisitions providing further upside. We have increased adjusted free cash flow* per share at a compounded rate of more than 15% per year over the past several years, and expect continuing double-digit per share growth in the upcoming year. Our strong financial profile continues to afford the flexibility to fund outsized acquisition activity, an increasing cash dividend and opportunistic share repurchases."

GUIDANCE:

Waste Connections sees FY2019 revenue of $5.31 billion, versus the consensus of $5.34 billion.

• Net income attributable to Waste Connections is estimated at approximately $636.0 million.
• Adjusted EBITDA* is estimated at approximately $1.705 billion, or about 32.1% of revenue.
• Net cash provided by operating activities is estimated to be approximately $1.525 billion.
• Adjusted free cash flow* is estimated to be approximately $950.0 million.

For earnings history and earnings-related data on Waste Connections (WCN) click here.