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Waste Management, Inc. surprises on Q2 earnings

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waste management

Waste Management Inc is an environmental services and waste management provider for North America. This week Waste Management submitted better than expected second-quarter results, showing an accelerated recovery on all segments. Following these impressive results, shares soared to an all-time high of  $149,95 on July 27th. 

In the second quarter, WM reported earnings of $1.27 per share, up 44.3% from last year, and beat analysts’ estimates of $1.18 per share.

Revenue was at $4.48 billion, growing 25.8% compared to last year, and surpassed the street estimate of $4.23 billion.

President and CEO Jim Fish commented, “The acquisition of Advanced Disposal, the return of volumes from early pandemic levels, and our continued focus on cost control all contributed to financial outcomes that exceeded expectations.”

The company undertook pricing and cost management steps in the first half of the fiscal year 2021 to offset the effects of inflation. According to reports, the company expects to maintain this focus for the rest of the year, and as a result, it has raised its FY21 revenue guidance for a growth of 15.5 to 16% annually

The company expects to buy back shares worth up to $850 million through the rest of the year, going ahead with its $1.35 billion authorized share buyback program.

Following Q2 results, Morgan Stanley analyst Jeffrey Goldstein assigned a Hold rating on the stock while changing the price target to $154, a 4.8% upside potential, from $150.

On average, the stock has a Moderate Buy consensus rating from top analysts. The average Waste Management price target of $151.11 means a 2.8% upside potential from current levels. WM shares have gained 36.7% over last year.

Is Waste Management a good long-term investment? Let us know what you think in the comments below. 

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