NYSE$WM

Waste Management Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Waste Management's Q2 2021 performance was marked by substantial growth driven by economic recovery and the integration of Advanced Disposal, leading to exceeded expectations and increased financial guidance.

Waste Management reported strong Q2 2021 results, driven by economic recovery and the integration of Advanced Disposal. The company exceeded expectations, with adjusted operating EBITDA growing by 28% and free cash flow reaching $649 million. As a result, Waste Management is increasing its full-year revenue, adjusted operating EBITDA, and free cash flow guidance and expects to repurchase an additional $850 million of its common stock in 2021.

  • Waste Management's business experienced tremendous growth in Q2 due to the economic recovery from the pandemic.
  • The acquisition of Advanced Disposal, return of volumes, and focus on cost control contributed to exceeding financial expectations.
  • Adjusted operating EBITDA grew 28%, and adjusted operating EBITDA margin expanded 50 basis points.
  • The company generated more than $1 billion of cash from operations.

Headline financials

Total Revenue

$4.48B

Previous: $3.56B+25.7%
EPS (adj)

$1.27

Previous: $0.88+44.3%
Core Price

6.2%

Previous: 1.3%+376.9%
Free Cash Flow

$351M

Previous: $307M+14.3%
Net Income

$351M

Previous: $307M+14.3%
Operating Income

$791M

Previous: $527M+50.1%
Gross Profit

$1.74B

Previous: $1.38B+26.0%
Cash & Equivalents

$148M

Previous: $2.66B-94.4%
Total Assets

$29B

Previous: $26.6B+9.1%
Stock-Based Comp

$22M

Previous: $10M+120.0%

Revenue & EPS history

Waste Management · Revenue · Quarterly

$4.48B

Q2 2021+25.7%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

Waste Management has revised its 2021 outlook, expecting total company revenue growth of 15.5% to 16.0%, adjusted operating EBITDA between $5.0 billion and $5.1 billion, and free cash flow between $2.5 billion and $2.6 billion.

Tailwinds

  • Total Company revenue growth in 2021 is expected to be 15.5% to 16.0%.
  • Combined internal revenue growth from yield and volume in the collection and disposal business is expected to be 5.5% or greater.
  • Adjusted operating EBITDA is expected to be between $5.0 billion and $5.1 billion in 2021.
  • Free cash flow is projected to be between $2.5 billion and $2.6 billion in 2021.
  • The Company is on target to capture between $80 million and $85 million in cost synergies in 2021 from the acquisition of Advanced Disposal.

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 Q2 2021

Historical avgQ2 2021

+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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