Waste Management (NYSE: WM) reported Q4 EPS of $1.03, $0.06 worse than the analyst estimate of $1.09. Revenue for the quarter came in at $4.07 billion versus the consensus estimate of $3.97 billion.

KEY HIGHLIGHTS FOR THE FOURTH QUARTER AND THE FULL YEAR 2020

Revenue

• In the fourth quarter of 2020, revenue increased $185 million in the Company’s collection and disposal business compared to the fourth quarter of 2019, primarily driven by $202 million in acquisition revenue and $79 million of growth from yield partially offset by $93 million in volume declines. For the full year, revenue decreased $141 million in the Company’s collection and disposal business compared to 2019, primarily driven by $669 million in volume declines partially offset by $299 million of growth from yield and $244 million in acquisition revenue.
• Core price for the fourth quarter of 2020 was 3.2% compared to 4.3% in the fourth quarter of 2019. For the full year, core price was 2.9% for 2020 compared to 4.2% in 2019.(d)
• Collection and disposal yield was 2.3% in the fourth quarter of 2020 compared to 3.2% in the fourth quarter of 2019. For the full year, collection and disposal yield was 2.2% in 2020 compared to 2.8% in 2019.
• The Company’s 2020 pricing results were muted relative to historical results due to deliberate customer-centric steps taken during the second quarter to temporarily suspend price increases and certain fees for customers impacted by the COVID-19 pandemic. The Company remains firmly committed to its pricing programs as evidenced by the Company’s strong post-collection and residential yield.
• Total Company volumes declined 2.6% in the fourth quarter of 2020 compared to a decline of 5.1% in the third quarter of 2020 and a decline of 0.4% in the fourth quarter of 2019. For the full year, total Company volumes declined 4.5% in 2020 compared to growth of 2.3% in 2019.

“I am extremely proud of how our team worked through the challenges during 2020 to provide reliable, high quality service, and continued to do so as we welcomed new customers and team members following our acquisition of Advanced Disposal,” said Jim Fish, Waste Management’s President and Chief Executive Officer. “Our focus on operational execution and efficiency allowed us to match the highest full-year adjusted operating EBITDA margin we have ever achieved at 28.4%.(a) So, in a year where many companies suffered significant financial impacts from the pandemic and resulting economic crisis, Waste Management delivered full-year 2020 results within 1.5% of our record-high 2019 adjusted operating EBITDA.(a)

“Complementing our strong financial performance is the recognition that we continue to receive for leading the way to a more sustainable future. Fortune magazine recently named Waste Management to its 2021 World’s Most Admired Companies List, and for the fifth consecutive year, CDP included Waste Management on its ‘A List’ for climate leadership. We remain committed not only to managing waste responsibly but also investing in recycling infrastructure and renewable energy projects and collaborating with our stakeholders to create new, sustainable environmental solutions.”

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