Waste Connections (NYSE: WCN) reported Q4 EPS of $0.69, $0.07 better than the analyst estimate of $0.62. Revenue for the quarter came in at $1.36 billion versus the consensus estimate of $1.34 billion.

"2019 ended on a high note, as financial results for the fourth quarter exceeded expectations on better than expected solid waste price growth, E&P waste activity and acquisition contribution. We are also extremely pleased with our results for the full year, as underlying adjusted EBITDA* margins in solid waste collection, transfer and disposal expanded by 50 basis points. Moreover, our ability to deliver full year adjusted free cash flow* of $916.8 million or 17.0% of revenue and 54.8% of adjusted EBITDA* on a 16.2% increase in capital expenditures as we reinvested in and expanded our business is indicative of our disciplined focus on quality of revenue and free cash flow generation," said Worthing F. Jackman, President and Chief Executive Officer.

Mr. Jackman added, "Acquisition activity also accelerated into year-end, as we announced an additional $130 million in acquired annualized revenue in December, including a new market entry in Pennsylvania and tuck-ins in Illinois and Tennessee. Acquisitions completed in 2019 provide rollover revenue growth of approximately $170 million in 2020, and the pace of acquisition activity remains elevated. Along with strong pricing growth, this already sets us up for high single digit growth in revenue and adjusted free cash flow*. Positive solid waste volumes, any increases in values for recycled commodities or renewable energy credits since year-end, or additional acquisitions closed during the year would provide upside to our initial 2020 outlook."

Mr. Jackman concluded, "Over 55% of our operating locations either posted zero safety-related incidents in 2019 or drove further year-over-year improvements. We would like to recognize the tireless efforts of our more than 18,000 employees for our continuing success."

GUIDANCE:

Waste Connections sees FY2020 revenue of $5.725-5.775 billion, versus the consensus of $5.81 billion.

Looking at 2020:

• Expects revenue in the range of $5.725 billion to $5.775 billion, excluding additional acquisitions
• Expects net income attributable to Waste Connections in the range of $653.0 million to $668.0 million
• Expects adjusted EBITDA* in the range of $1.760 billion to $1.785 billion
• Expects net cash provided by operating activities in the range of $1.600 billion to $1.625 billion
• Expects adjusted free cash flow* in the range of $975.0 million to $1.0 billion

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