Waste Management (NYSE: WM) reported Q1 EPS of $0.93, $0.03 better than the analyst estimate of $0.90. Revenue for the quarter came in at $3.73 billion versus the consensus estimate of $3.69 billion.

UPDATE ON 2020 OUTLOOK

The Company is suspending its 2020 financial guidance due to the unprecedented impact of, and uncertainty created by, the COVID-19 pandemic.

“Our business model generates strong cash flow and is resilient in any economic cycle. In past downturns, we have demonstrated the ability to flex spending and manage capital expenditures to generate strong free cash flow and return excess cash to our shareholders. We expect to deliver on these priorities as we continue to provide essential services to our customers during this unprecedented pandemic,” Fish said. “At this time, we cannot forecast with reasonable accuracy the duration of the coronavirus disruptions, particularly for small businesses, or the pace of an eventual recovery. We expect to resume providing financial guidance when we have greater clarity.”

We anticipate a significant decrease in 2020 revenue from planned levels as a result of COVID-19, driven by volume declines in our landfill and industrial and commercial collection businesses. To partially offset the impact of this significant revenue decline, the Company is taking the following steps to manage costs and capital spending without compromising long-term strategic priorities or growth opportunities:

• Leveraging technology to enable swift route optimization,
• Dramatically reducing overtime hours,
• Limiting hiring and optimizing the existing workforce through greatly improved retention and reduced turnover,
• Reducing or eliminating certain non-essential costs and expenses like travel and entertainment and consulting costs,
• Reducing incentive compensation accruals, and
• Flexing capital expenditures to a level that is consistent with volume changes.

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