NYSE$WM

Waste Management Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Delivered double-digit growth in income from operations, net income, and diluted earnings per share.

Waste Management (WM) reported strong financial growth in 2022, with the collection and disposal business exceeding expectations and delivering double-digit adjusted operating EBITDA growth in both the fourth quarter and for the full year. The company is investing in automation technology and sustainability businesses to drive future performance.

  • Collection and disposal business exceeded expectations, driving growth.
  • Adjusted operating EBITDA grew by 8.8% in Q4 and over 9.5% for the full year.
  • Strategic priorities advanced through employee engagement, technology improvements, and sustainability investments.
  • Expects 2023 performance to be driven by a strong year in the collection and disposal business.

Headline financials

Total Revenue

$4.94B

Previous: $4.68B+5.5%
EPS (adj)

$1.30

Previous: $1.26+3.2%
Capital Expenditures

$2.81B

Previous: $2.04B+37.8%
Free Cash Flow

-$1.76B

Previous: -$1.05B-67.9%
Net Income

$499M

Previous: $506M-1.4%
Operating Income

$765M

Previous: $718M+6.5%
Gross Profit

$1.84B

Previous: $1.72B+6.9%
Cash & Equivalents

$351M

Previous: $118M+197.5%
Total Assets

$31.4B

Previous: $29.1B+7.8%
Stock-Based Comp

$13M

Previous: $27M-51.9%

Revenue & EPS history

Waste Management · Revenue · Quarterly

$4.94B

Q4 2022+5.5%vs Q4 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Forward guidance

Waste Management expects operational efficiencies and management of discretionary costs, combined with revenue growth, to deliver 40-80 basis points of adjusted operating EBITDA margin expansion in 2023. Adjusted operating EBITDA growth of 7% at the midpoint of guidance.

Tailwinds

  • Operational efficiencies.
  • Management of discretionary costs.
  • Revenue growth.
  • Strong foundation for continued growth in 2023.
  • Significant cash from operations.

Headwinds

  • Year-over-year decline of more than 25% in recycled commodity prices.
  • Average natural gas price decline of nearly 40%.
  • Average electricity price decline of about about 5%.
  • High inflation.
  • Tight labor market.

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 2022

Historical avgQ4 2022

+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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