Waste Connections (WCN) Q3 Earnings & Revenues Top Estimates
Waste Connections WCN reported solid third-quarter 2019 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of 73 cents per share beat the consensus estimate by a penny and increased 5.8% year over year. Revenues of $1.41 billion beat the consensus mark by $7.1 million and improved 10.2% year over year.
The company has gained $82.8 million of revenues from acquisitions completed since the year-ago period.
So far this year, shares of Waste Connections have gained 24.7% compared with 21.6% rise of the industry it belongs to.
Let’s check out the numbers in detail.
Revenues by Segment
Solid Waste Collection segment revenues increased 13.7% year over year to $988.26 million. The segment accounted for 70% of total revenues.
Solid Waste Disposal and Transfer segment revenues increased 9.1% from the year-ago quarter to $317.66 million. The segment contributed 22.5% to total revenues.
E&P Waste Treatment, Recovery and Disposal segment revenues increased 2.5% from the year-ago quarter to $66.41 million. The segment contributed 4.7% to total revenues.
Intermodal and Other segment revenues declined 20.9% to $26.37 million. The segment accounted for 1.8% of total revenues.
Solid Waste Recycling segment revenues declined 38.6% year over year to $13.75 million. The segment accounted for 1% of total revenues.
Waste Connections, Inc. Revenue (TTM)
Adjusted EBITDA in the third quarter was $443.56 million compared with $416.81 million in the year-ago quarter. Adjusted EBITDA margin came in at 31.4% compared with 32.5% in the year-ago quarter.
Operating income totaled $236.60 million compared with $232.87 million in the year-ago quarter. Operating margin was 16.8% compared with 18.2% in the year-ago quarter.
Waste Connections, Inc. Price, Consensus and EPS Surprise
Balance Sheet and Cash Flow
Waste Connections exited third-quarter 2019 with cash and cash equivalents of $303.78 million compared with $209.21 million at the end of the prior quarter. Long-term debt was $4.04 billion compared with $4.08 billion at the end of the prior quarter.
The company generated $432.38 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $259.03 million and capital expenditures totaled $179.74 million.
Waste Connections paid out dividend of $42.13 million in the reported quarter. The company increased its regular quarterly cash dividend by 15.6%.
Zacks Rank & Upcoming Releases
Currently, Waste Connections carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector are awaiting third-quarter 2019 earnings of key players like Fiserv FISV, ICF International ICFI and FLEETCOR Technologies FLT, each scheduled to release results on Nov 6.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Click to get this free report
FleetCor Technologies, Inc. (FLT): Free Stock Analysis Report
Fiserv, Inc. (FISV): Free Stock Analysis Report
ICF International, Inc. (ICFI): Free Stock Analysis Report
Waste Connections, Inc. (WCN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.