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

• Analysts estimate earnings per share (EPS) to be $1.65 with projected revenues of approximately $6.1 billion.
• Revenue is expected to grow by 18.4%, reaching $6.11 billion, driven by the company's focus on maximizing customer lifetime value and disciplined volume growth.
• WM has a history of surpassing earnings estimates, indicating a positive shift in analysts' expectations and potential influence on short-term stock performance.

Waste Management, Inc. (NYSE:WM) is a leading provider of comprehensive waste management services in North America. The company is set to release its quarterly earnings on April 28, 2025. Analysts have estimated earnings per share (EPS) to be $1.65, with projected revenues of approximately $6.1 billion. This release is crucial as it could impact the stock's short-term performance.

Despite a forecasted 5.7% decline in EPS compared to the same quarter last year, WM's revenue is expected to grow by 18.4%, reaching $6.11 billion. This growth is driven by the company's focus on maximizing customer lifetime value and disciplined volume growth. The Collection segment is anticipated to generate $4.7 billion, a 15.3% increase year-over-year, while the Landfill segment is expected to contribute $1.4 billion.

Over the past 30 days, there has been a slight upward revision of 0.6% in the consensus EPS estimate, indicating a positive shift in analysts' expectations. Such revisions are important as they often influence investor behavior and can be a strong indicator of short-term stock performance. WM has a history of surpassing earnings estimates, having exceeded the Zacks Consensus Estimate in two of the last four quarters with an average beat of 3.9%.

WM's financial metrics provide insight into its valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 33.47, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 4.15, reflecting the value placed on each dollar of sales. Additionally, the enterprise value to sales ratio is around 5.21, suggesting the company's total valuation relative to its sales.

The company's debt-to-equity ratio is approximately 2.90, indicating its financial leverage. The current ratio is around 0.76, suggesting WM's ability to cover short-term liabilities with short-term assets. These financial metrics, along with the anticipated earnings report, will be closely watched by investors and analysts to gauge the company's performance and future prospects.