WM Earnings Beat Estimates in Q1, Revenues Appreciate 17% Y/Y

Zacks
Yesterday

WM WM reported mixed first-quarter 2025 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

WM’s quarterly adjusted earnings of $1.67 per share surpassed the consensus mark by 1.2% but declined 4.6% year over year. Total revenues of $6 billion missed the consensus mark by a 1.3% margin but grew 16.7% from the year-ago quarter.

The stock has gained 7.4% in the past six months, outperforming 3.6% growth of its industry and the 4.1% decline of the Zacks S&P 500 Composite.

Waste Management, Inc. Price, Consensus and EPS Surprise

Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. Quote

WM’s Quarterly Numbers in Detail

The Collection segment recorded revenues of $4.3 billion, increasing 4.7% from the year-ago quarter’s actual and missing our estimate of $4.7 billion. The Landfill segment’s top line gained 3.6% year over year to $1.2 billion and lagged our projection of $1.4 billion. Total revenues in the Transfer segment increased 5.7% to $592 million, missing our estimate of $681.4 million. The Recycling Processing and Sales segment’s revenues rose 6.7% to $465 million and missed our estimate of $526.3 million.

WM Renewable Energy registered revenues of $92 million, rising 31.4% from the year-ago quarter and outpacing our estimate of $89 million. WM Healthcare Solutions Corporate and Other recorded $627 million in revenues, surpassing our estimate of $121 million. The figures are before the alignment of intercompany adjustment.

The adjusted operating EBITDA was $1.7 billion, which missed our estimate of $1.8 billion and rose 12.2% from the year-ago quarter. The adjusted operating EBITDA margin decreased 110 basis points to 28.5% from the year-ago quarter and lagged our estimate of 30.1%.

Cash Flow of WM

WM generated $1.2 billion in cash from operating activities in the reported quarter, while capital expenditure was $831 million. The free cash flow was $475 million. In the first quarter of 2025, $336 million in cash dividends were distributed to shareholders.

WM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Republic Services, Inc. RSG reported mixed first-quarter 2025 results.

RSG’s earnings per share of $1.58 outpaced the Zacks Consensus Estimate by 4% and gained 9% from the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Revenues of $4 billion missed the consensus mark by a slight margin but increased 3.8% year over year.

The Interpublic Group of Companies, Inc. IPG posted mixed first-quarter 2025 results.

IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter.

Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 8.3% year over year.

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Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report

Waste Management, Inc. (WM) : Free Stock Analysis Report

Republic Services, Inc. (RSG) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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