Waste Management, Inc. (NYSE:WM) Earnings Preview

• Analysts expect Waste Management, Inc. (NYSE:WM) to report earnings per share of $1.86 and revenue of $5.51 billion for the third quarter.
• The Collection segment is anticipated to generate $4.1 billion, marking a 17.3% year-over-year increase.
• WM has a history of exceeding earnings expectations, with an average surprise of 7.5% over the last four quarters.

Waste Management, Inc. (NYSE:WM) is a leading provider of comprehensive waste management services in North America. The company offers collection, transfer, recycling, and disposal services. As a major player in the waste management industry, WM competes with companies like Republic Services and Waste Connections. The company is set to release its third-quarter earnings on October 28, 2024.

Analysts expect WM to report earnings per share of $1.86, with projected revenue of approximately $5.51 billion. This represents a 5.8% increase in revenue compared to the same quarter last year, as highlighted by Zacks. The growth is likely driven by WM's customer lifetime value model, which has contributed to organic revenue growth. The Collection segment is expected to generate $4.1 billion, marking a 17.3% year-over-year increase.

WM has a history of exceeding earnings expectations, having surpassed estimates in three of the last four quarters with an average surprise of 7.5%. Investors are keen to see if the company can continue this trend, as exceeding expectations could positively impact the stock price. Conversely, failing to meet estimates might lead to a decline in the stock's value.

The company's financial metrics provide insight into its valuation and performance. WM has a price-to-earnings (P/E) ratio of 32.62, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio is 3.96, reflecting the market value compared to its revenue. Additionally, the enterprise value to sales ratio is 4.75, offering a perspective on the company's valuation relative to its sales.

WM's debt-to-equity ratio is 2.25, showing the proportion of debt used to finance its assets relative to shareholders' equity. The current ratio is 1.07, suggesting the company's ability to cover short-term liabilities with short-term assets. These metrics, along with the earnings yield of 3.07%, provide a comprehensive view of WM's financial health and investment potential.