Waste Connections (NYSE: WCN) reported Q3 EPS of $0.72, $0.06 better than the analyst estimate of $0.66. Revenue for the quarter came in at $1.39 billion versus the consensus estimate of $1.38 billion.

• Revenue of $1.390 billion, exceeding outlook
• Net income attributable to Waste Connections of $158.0 million, or $0.60 per share
• Adjusted net income attributable to Waste Connections* of $188.6 million, or $0.72 per share
• Adjusted EBITDA* of $432.6 million, or 31.1% of revenue, exceeding outlook
• YTD net cash provided by operating activities of $1.186 billion
• YTD adjusted free cash flow* of $778.4 million, or 19.2% of revenue and up year over year
• Increases regular quarterly cash dividend by 10.8%

"Sequential improvement in solid waste volumes and increased recovered commodity values drove better than expected results in the third quarter and provide incremental momentum going forward. Our strong operating results, financial performance and frontline support continue to differentiate Waste Connections during this year's unprecedented health, economic and social challenges," said Worthing F. Jackman, President and Chief Executive Officer.

Mr. Jackman added, "Higher margin flow-through from improving revenue during the quarter provided better than expected adjusted EBITDA* margin and adjusted free cash flow* generation. Adjusted EBITDA* as a percentage of revenue in the period was approximately 40 basis points above our outlook in spite of 30 basis points higher than expected discretionary frontline and incentive compensation costs impacting the quarter, which resulted from our more than $35 million commitment in incremental costs primarily directed to discretionary supplemental pay for frontline employees. Solid waste margins expanded by almost 200 basis points compared to the year ago period, with collection, transfer and disposal accounting for over 80% of that increase. Moreover, year-to-date adjusted free cash flow* of $778 million, or 19.2% of revenue, increased year over year, putting us firmly on track to exceed the adjusted free cash flow* outlook for the full year that we communicated in August and positioning us for double digit growth in adjusted free cash flow* in 2021."

Mr. Jackman concluded, "As anticipated last quarter, our strong operating performance, free cash flow generation and balance sheet strength positioned us for a double-digit percentage increase in our quarterly cash dividend, for the tenth consecutive year. We are also on track for another year of above average acquisition activity, while maintaining optionality for opportunistic share repurchases. As we look ahead, we expect to emerge from this challenging period better positioned financially, with tremendous flexibility with respect to capital allocation, and operationally, with higher operating leverage in solid waste and both safety-related incidents and voluntary turnover levels already achieving multi-year lows."

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