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With a market cap of $84.5 billion, Waste Management, Inc. (WM) leads the environmental solutions sector by providing comprehensive waste management services based in Houston, Texas. The company is expected to announce its fiscal Q2 earnings results after the market closes on Wednesday, Jul. 24.
Ahead of this event, analysts expect WM to report a profit of $1.81 per share, up 19.9% from $1.51 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. Higher prices and steady demand helped the company surpass the consensus EPS estimate by 15.1% in the most recent quarter.
For fiscal 2024, analysts expect WM to report EPS of $7.31, up 18.1% from $6.19 in fiscal 2023.
WM has outperformed the broader markets in 2024, with shares up 17.4% on a YTD basis versus the S&P 500 Index's ($SPX) 16.8% gain and the S&P 500 Industrial Sector SPDR's (XLI) 6.7% returns over the same period.
Waste Management's shares saw a marginal rise after its Q1 earnings result on Apr. 24. The company's higher-than-expected profit, driven by increased pricing, was a key factor in driving the stock price despite a slightly lower-than-expected revenue. The positive outlook for revenue growth in 2024 further boosted investor confidence. In a strategic move on Jun. 3, the company announced its acquisition of Stericycle (SRCL) in a $7.2 billion deal. This move is significant as it marks Waste Management's expansion into the healthcare waste disposal market in the U.S.
Analysts' consensus view on Waste Management stock is cautiously optimistic overall, with a "Moderate Buy" rating. Out of 18 analysts covering the stock, seven recommend a "Strong Buy," one has a "Moderate Buy" rating, and 10 give a "Hold" rating. This configuration is slightly more bullish than three months before, with six analysts suggesting a "Strong Buy."
The average analyst price target for WM is $221.06, suggesting a potential upside of just 5.5% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
