Waste Management, Inc WM is scheduled to release third-quarter 2024 results on Oct. 28, after market close.
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WM’s earnings surprise history has been decent. It beat on earnings in three of the trailing four quarters and met once, the average surprise being 7.5%.
Waste Management, Inc. Price and EPS Surprise
Waste Management, Inc. price-eps-surprise | Waste Management, Inc. Quote
Waste Management’s Q3 Expectations
The Zacks Consensus Estimate for revenues is pegged at $5.5 billion, hinting at 5.8% growth from the year-ago quarter’s reported actuals. We expect the top-line growth to have been fueled by WM’s customer lifetime value model. This model is anticipated to have driven organic revenue growth.
We anticipate revenues from Collection to be $4.1 billion, indicating a 17.3% increase on a year-over-year basis. Our estimate for Landfill’s revenues is pegged at $1.3 billion, implying 1.9% growth from the year-ago quarter’s reported actuals. TheTransfer segment’s revenues are expected to be $612.3 million, indicating a 3.1% rise on a year-over-year basis. The Recycling segment’s revenues are expected to be $416.2 million, implying a 12.5% increment year over year.
Our expectation for adjusted EBITDA is $1.6 billion, indicating a 6.9% rise from the year-ago quarter’s reported figure. We believe that the adjusted EBITDA might have been driven by margin expansion from price and cost optimization in the collection and disposal business and the sale of non-strategic assets.
The consensus estimate for earnings per share is pegged at $1.9, indicating 14.1% growth from the year-ago level. This is likely to have been driven by strong margins attributed to robust operating performance coupled with disciplined pricing.
What Our Model Predicts for WM
Our proven model does not predict an earnings beat for WM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
WM currently has an Earnings ESP of -1.04% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks from the broader Business services sector, which, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Corpay, Inc. CPAY: The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $1 billion, indicating 5.7% year-over-year growth. For earnings, the consensus mark is pegged at $5 per share, implying a 10.5% increase from the year-ago quarter’s level. The company beat on earnings in two of the trailing four quarters, missed once and met in the other, delivering an average surprise of 0.2%.
CPAY has an Earnings ESP of +0.08% and a Zacks Rank of 2 at present. The company is scheduled to declare third-quarter 2024 results on Nov. 7.
Gartner IT: The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $1.5 million, implying year-over-year growth of 4.6%. For earnings, the consensus mark is pegged at $2.5 per share, indicating a 4.3% decrease from the year-ago quarter’s level. The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 17.4%.
IT has an Earnings ESP of +10.44% and a Zacks Rank of 2 at present. The company is scheduled to declare third-quarter 2024 results on Nov. 5.
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Waste Management, Inc. (WM) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
Corpay, Inc. (CPAY) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
