Yahoo Finance Waste Management (WM) Gains 6.3% in Past 3 Months: Here's How
Waste Management, Inc. WM stock has had an impressive run on the bourses over the past three months, with its shares rising 6.3%.
Let’s delve into the factors that have contributed to the company’s encouraging performance.
Top and Bottom-Line Performance
Waste Management has an impressive earnings surprise history. Its earnings beat estimates in three of the four trailing quarters and missed the same in one, delivering an average surprise of 4.7%. The company’s revenues beat estimates in three of the trailing four quarters and missed the same in one (the last quarter). These better-than-expected results can be attributed to solid waste business, strong organic growth and strict cost control.
Waste Management, Inc. Price
Waste Management, Inc. price | Waste Management, Inc. Quote
Year-Over-Year Increase in Earnings and Revenues
WM’s earnings and revenues have shown year-over-year growth in each of the trailing four quarters. The company reported earnings of $1.30 per share for fourth-quarter 2022, up 3.2% from the year-ago period. Revenues for the quarter were $4.9 billion, indicating a 5.5% increase year over year.
The Zacks Consensus Estimate for 2023 earnings is pegged at $6.04 per share, indicating an 8% year-over-year increase.
The consensus estimate for 2023 revenues is pegged at $20.63 billion, indicating a 4.8% increase year over year.
Consistent Dividend Payer
Waste Management has a consistent record of rewarding its shareholders through dividend payments and share repurchases. The company repurchased shares worth $1.5 billion, $1.4 billion and $402 million in 2022, 2021 and 2020, respectively. It paid $1.1 billion, $970 million and $927 million in dividends during 2022, 2021 and 2020, respectively. Such moves indicate Waste Management’s commitment to boosting shareholders’ value and underlining their confidence in its business. Recently, the company declared a dividend of 70 cents, a 7.7% increase from the payout on Mar 24, to stockholders of record as of Mar 10.
Zacks Rank and Stocks to Consider
Waste Management currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Business Services sector are ICF International ICFI, Maximus MMS and Gartner, Inc. IT.
For first-quarter 2023, ICF International’s earnings are expected to increase 7.6% from the year-ago quarter’s $1.41 per share. In 2023, the company’s bottom line is expected to increase 9.2% on a year-over-year basis.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41 per share, which has been revised upward 6% in the past 60 days. The consensus estimate for ICFI’s full-year earnings is pegged at $6.3 per share, which has been revised upward 7.3% in the past 60 days. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Maximus’ 2023 first-quarter and full-year earnings is pegged at 81 cents per share and $4.15 per share, respectively. The consensus mark for first-quarter earnings has been revised 12% downward and the same for full-year earnings has been revised 7.2% upward in the past 60 days. The company currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Gartner’s first-quarter 2023 earnings is pegged at $2.04 per share. The bottom line has been revised 3% upward in the past 60 days. The consensus estimate for full-year 2023 earnings is pegged at $9.49 per share, which has been revised slightly upward in the past 60 days. The company currently carries a Zacks Rank #2 (Buy).
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Waste Management, Inc. (WM) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
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