NYSE$WM

Waste Management Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported strong first quarter, driven by cost optimization and disciplined pricing, leading to increased full-year financial outlook.

Waste Management (WM) announced strong financial results for Q1 2024, with adjusted operating EBITDA growth of 14.6% and margin expansion of 240 basis points. The company raised its full-year outlook for both adjusted operating EBITDA and free cash flow by $100 million.

  • Adjusted operating EBITDA grew by 14.6%.
  • Operating EBITDA margin expanded by 240 basis points.
  • The company raised its full-year outlook for adjusted operating EBITDA and free cash flow by $100 million.
  • Performance was driven by cost optimization in the Collection and Disposal business and disciplined execution on price programs.

Headline financials

Total Revenue

$5.16B

Previous: $4.89B+5.5%
EPS

$1.75

Previous: $1.31+33.6%
Capital Expenditures

-$668M

No prior period
Free Cash Flow

$708M

Previous: $533M+32.8%
Net Income

$708M

Previous: $533M+32.8%
Operating Income

$1.02B

Previous: $825M+23.2%
Gross Profit

$2.02B

Previous: $1.81B+11.8%
Cash & Equivalents

$322M

Previous: $257M+25.3%
Total Assets

$32.7B

Previous: $31.3B+4.4%
Stock-Based Comp

$30M

Previous: $26M+15.4%

Revenue & EPS history

Waste Management · Revenue · Quarterly

$5.16B

Q1 2024+5.5%vs Q1 2023
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Forward guidance

WM raised its prior outlook for both adjusted operating EBITDA and free cash flow by $100 million.

Tailwinds

  • Company is positioned to deliver full-year margin in the range of 29.7% to 30.2%.
  • Full-year margin is expected to expand more than 100 basis points from the prior year at the midpoint.
  • Momentum in capturing cost efficiencies.
  • Execution on pricing programs.
  • Team's dedication to executing on strategic priorities.

Headwinds

  • Failure to implement optimization, automation, growth, and cost savings initiatives and overall business strategy.
  • Failure to obtain the results anticipated from strategic initiatives, investments, acquisitions or new lines of business.
  • Environmental and other regulations, including developments related to emerging contaminants, gas emissions, renewable energy, extended producer responsibility and our natural gas fleet.
  • Macroeconomic conditions, geopolitical conflict and large-scale market disruption resulting in labor, supply chain and transportation constraints, inflationary cost pressures and fluctuations in commodity prices, fuel and other energy costs.
  • Weakness in general economic conditions and capital markets, including potential for an economic recession.

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 Q1 2024

Historical avgQ1 2024

+0.1%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+2.5%

Avg return

30 days after

52%

38 / 73 earnings

Positive

+8.6%

Q2 2018

Best reaction

-11.3%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%+0.2%-7.0%
Q4 2025-1.9%-2.8%+4.0%
Q3 2025-4.4%-6.5%+1.7%
Q2 2025+0.3%+1.7%-3.5%
Q1 2025-0.1%+2.1%+3.8%
Q4 2024+6.1%+6.0%+11.1%
Q3 2024+6.0%+3.5%+10.5%
Q2 2024-8.6%-8.3%-4.0%
Q1 2024+1.9%+1.6%+0.0%
Q4 2023+5.6%+6.7%+11.7%
Q3 2023+5.2%+3.5%+10.1%
Q2 2023-4.0%-5.2%-8.5%
Q1 2023-2.4%+0.7%-2.6%
Q4 2022-2.8%-1.9%-3.0%
Q3 2022-4.1%-4.0%-0.4%
Q2 2022+6.2%+5.4%+10.6%
Q1 2022+7.4%+5.4%+1.3%
Q4 2021-2.7%-2.7%+3.3%
Q3 2021-3.7%-0.6%+2.8%
Q2 2021-0.7%+1.1%+4.7%
Q1 2021+1.7%+3.0%+4.9%
Q4 2020-0.5%-2.0%+8.3%
Q3 2020+6.3%+10.5%+8.5%
Q2 2020-0.0%-0.8%+4.0%
Q1 2020+2.5%+1.5%+13.3%
Q4 2019+0.1%+0.5%-16.2%
Q3 2019-3.2%-4.8%-5.3%
Q2 2019+2.3%+1.9%+0.1%
Q1 2019-0.3%+1.2%+2.2%
Q4 2018+0.5%+0.5%+2.4%
Q3 2018-2.6%+1.8%+4.2%
Q2 2018+8.6%+9.1%+11.3%
Q1 2018-0.1%-1.7%-1.4%
Q4 2017+3.1%+2.7%+4.6%
Q3 2017+6.2%+6.0%+3.7%
Q2 2017-0.3%-0.6%+0.3%
Q1 2017-1.9%-1.6%-3.2%
Q4 2016+1.5%+2.1%+3.1%
Q3 2016+1.0%+4.7%+11.6%
Q2 2016-1.5%-1.3%-5.0%
Q1 2016+4.2%
Q4 2015+1.1%
Q3 2015+2.7%
Q2 2015+2.2%
Q1 2015-5.6%
Q4 2014+6.5%
Q3 2014+0.3%
Q2 2014+3.4%
Q1 2014+2.5%
Q4 2013-5.7%
Q3 2013-2.5%
Q2 2013+0.4%
Q1 2013+3.4%
Q4 2012+0.1%
Q3 2012+1.4%
Q2 2012+5.3%
Q1 2012-5.1%
Q4 2011-1.2%
Q3 2011-2.8%
Q2 2011-11.3%
Q1 2011+1.3%
Q4 2010+0.1%
Q3 2010-1.0%
Q2 2010+1.3%
Q1 2009-1.7%
Q1 2010+0.4%
Q4 2009+3.7%
Q3 2009-2.4%
Q3 2008-2.4%
Q2 2009-4.6%
Q4 2008-4.6%
Q4 2007-4.6%
Q2 2008-4.6%

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