NYSE$WCN

Waste Connections Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Waste Connections' Q4 2019 results exceeded expectations due to solid waste price growth, E&P waste activity, and acquisition contributions.

Waste Connections reported Q4 2019 revenue of $1.362 billion, a 7.9% increase year-over-year. Net income attributable to Waste Connections was $133.3 million, or $0.50 per share, while adjusted net income was $181.4 million, or $0.69 per share. Adjusted EBITDA reached $419.0 million, representing 30.8% of revenue. The company expects revenue in the range of $5.725 billion to $5.775 billion for 2020.

  • Q4 revenue increased by 7.9% to $1.362 billion.
  • Net income attributable to Waste Connections was $133.3 million, or $0.50 per share.
  • Adjusted net income attributable to Waste Connections was $181.4 million, or $0.69 per share.
  • Adjusted EBITDA was $419.0 million, representing 30.8% of revenue.

Headline financials

Total Revenue

$1.36B

Previous: $1.26B+7.9%
EPS (adj)

$0.69

Previous: $0.63+9.5%
Core Price Growth

5.4%

No prior period
Surcharges

0.0%

No prior period
Volume

-1.4%

No prior period
Recycling

-0.8%

No prior period
Total Internal Growth

3.2%

No prior period
Capital Expenditures

$201M

Previous: $173M+16.4%
Free Cash Flow

$154M

Previous: $201M-23.2%
Net Income

$133M

Previous: $132M+0.5%
Operating Income

$194M

Previous: $200M-2.9%
Gross Profit

$548M

Previous: $517M+6.0%
Cash & Equivalents

$327M

Previous: $319M+2.3%
Total Assets

$13.7B

Previous: $12.6B+8.8%
Stock-Based Comp

$7.16M

Previous: $8.37M-14.4%

Revenue & EPS history

Waste Connections · Revenue · Quarterly

$1.36B

Q4 2019+7.9%vs Q4 2018
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Waste Connections · $1.36B total across 5 segments · Q4 2019

  • Solid Waste Collection
    $972M
  • Disposal & Transfer
    $283M
  • E&P Waste
    $62.5M
  • Intermodal & Other
    $30.5M
  • Solid Waste Recycling
    $13.2M

Forward guidance

Waste Connections provided its outlook for 2020, excluding impacts from additional acquisitions. Revenue is estimated in the range of $5.725 billion to $5.775 billion. Net income attributable to Waste Connections is estimated in the range of $653.0 million to $668.0 million. Adjusted EBITDA is expected to be in the range of $1.760 billion to $1.785 billion.

Tailwinds

  • Solid waste price growth of approximately 5.0%
  • Net income attributable to Waste Connections is estimated in the range of $653.0 million to $668.0 million
  • Adjusted EBITDA is estimated in the range of $1.760 billion to $1.785 billion
  • Net cash provided by operating activities is estimated in the range of $1.600 billion to $1.625 billion
  • Adjusted free cash flow is estimated in the range of $975.0 million to $1.0 billion

Headwinds

  • Assumes no change in the current economic environment
  • Outlook excludes any impact from additional acquisitions that may close during the year, and expensing of transaction-related items.
  • E&P waste revenue down approximately 10.0%
  • Values for recycled commodities and renewable energy credits as of year-end 2019
  • Certain components of the outlook for 2020 are subject to quarterly fluctuations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.4%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.3%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+8.1%

Q1 2026

Best reaction

-8.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.1%+4.5%-0.6%
Q4 2025-8.2%-6.1%-3.0%
Q3 2025+2.7%+0.6%+0.9%
Q2 2025+0.0%+0.6%-4.7%
Q1 2025+0.5%-0.1%+0.6%
Q4 2024-0.6%-1.2%-2.5%
Q3 2024-1.5%-2.4%+4.7%
Q2 2024-2.9%-2.7%+3.2%
Q1 2024-0.6%-0.9%-0.4%
Q4 2023+6.3%+8.7%+9.6%
Q3 2023-4.8%-3.4%-0.8%
Q2 2023-1.5%+0.2%-2.5%
Q1 2023-3.1%-1.5%-2.0%
Q4 2022+1.2%+1.1%-0.2%
Q3 2022+5.8%+6.5%+11.1%
Q2 2022+2.7%+4.7%+5.5%
Q1 2022-2.5%-5.8%-3.2%
Q4 2021+0.7%+1.2%+15.5%
Q3 2021+0.5%+3.0%+1.6%
Q2 2021-1.2%-1.8%+2.9%
Q1 2021+1.3%+2.8%+3.8%
Q4 2020+1.3%+0.4%+4.6%
Q3 2020-2.7%-1.9%+2.8%
Q2 2020+0.7%-1.6%-2.0%
Q1 2020+5.3%+7.2%+12.6%
Q4 2019+3.1%+4.1%-11.0%
Q3 2019+1.1%+0.7%-0.1%
Q2 2019-3.3%-5.0%-3.8%
Q1 2019+2.1%+3.3%+6.0%
Q4 2018-4.6%-2.5%-0.6%
Q3 2018+3.5%+1.8%+7.9%
Q2 2018+1.7%+0.8%+1.6%
Q1 2018+2.2%+4.1%+8.2%
Q4 2017+0.7%+3.6%+7.3%
Q3 2017+2.7%+1.2%-2.0%
Q2 2017+3.3%+1.8%+1.3%
Q1 2017+2.8%+2.0%+4.6%
Q4 2016+3.7%+4.5%+3.9%
Q3 2016-1.7%-0.1%+3.0%
Q2 2016+3.2%+5.0%+6.8%
Q1 2016+3.4%
Q4 2015-1.4%
Q3 2015-4.0%
Q2 2015+2.1%
Q1 2015-0.1%
Q4 2014-1.5%
Q3 2014+2.2%
Q2 2014+1.1%
Q1 2014-0.0%
Q4 2013+0.9%
Q3 2013-2.3%
Q2 2013-0.6%
Q1 2013+3.9%
Q4 2012-2.7%
Q3 2012-3.4%
Q1 2012+2.0%
Q2 2012+2.0%
Q4 2010+1.3%
Q4 2011+1.3%
Q3 2011-5.4%
Q2 2011-0.6%
Q1 2011-3.4%
Q3 2010-2.9%
Q2 2010+6.9%
Q1 2010-1.1%

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