Waste Management (WM) has reported first-quarter financial results that narrowly missed Wall Street forecasts.
The Houston, Texas-based waste disposal company announced earnings per share (EPS) of $1.58, which was just below the consensus forecast among analysts that called for $1.59. Revenue in the period totaled $6.01 billion, which was below the $6.10 billion anticipated on Wall Street.
North America’s leading provider of waste and recycling said its sales grew 16.7% from a year earlier. Much of the revenue growth was driven by a core price increase of 6.5% and a collection and disposal yield during the quarter of 4%.
Waste Management’s revenue by segment. Source: Main Street Data
Sustainability
Waste Management said it invested $128 million in sustainability growth projects during the quarter and achieved targeted synergies of $80 million to $100 million from its recent Stericycle acquisition. The company reiterated its 2025 outlook despite ongoing market and macroeconomic volatility and uncertainty.
Waste Management CEO Jim Fish said, “Our first quarter results reflect the strong track record of the WM team as we started the year delivering on each of our strategic priorities. We continue to deliver disciplined revenue growth and cost optimization in our core business, while advancing our sustainability growth investments.”
Is WM Stock a Buy?
The stock of Waste Management has a consensus Moderate Buy rating among 19 Wall Street analysts. That rating is based on 13 Buy and six Hold recommendations assigned in the past three months. The average WM price target of $248.50 implies 8.71% upside from current levels. These ratings are likely to change after the company’s financial results.
