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Waste Management (WM) to Post Q2 Earnings: What's in Store?

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Waste Management, Inc. (WM - Free Report) is scheduled to report second-quarter 2020 results on Jul 30, before the bell.

Let’s check out the expectations in detail.

Q2 Expectations

Volume declines in the landfill, industrial and commercial collection businesses are likely to have partially offset the yield and volume growth in Waste Management’s collection and disposal business. The Zacks Consensus Estimate for the company’s second-quarter 2020 revenues is pegged at $3.48 billion, indicating a decline of 11.8% from the year-ago quarter's reported figure.

Segment-wise, the consensus mark for Collection segment revenues is pegged at $2.29 billion, implying a decline of 10.9% from the year-ago quarter reported figure. The consensus estimate for Landfill segment revenues is pegged at $767 million, indication a decrease of 25% year over year. The consensus mark for Transfer segment revenues stands at $409 million, suggesting a decrease of 13.7% from the year-ago quarter reported figure. The consensus estimate for Recycling segment revenues is pegged at $242 million, indicating a decline of 8.3% from the year-ago quarter reported figure.

The consensus estimate for earnings stands at 82 cents, implying a significant year-over-year decline of 26.1%. Rise in selling, general and administrative expenses (resulting from technology costs incurred to boost work-from-home capabilities), and decline in operating margins are likely to have weighed on the bottom line.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Waste Management this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Waste Management has an Earnings ESP of -0.61% and a Zacks Rank #3.

Waste Management, Inc. Price and EPS Surprise

 

Waste Management, Inc. Price and EPS Surprise

Waste Management, Inc. price-eps-surprise | Waste Management, Inc. Quote

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on second-quarter 2020 earnings.

Aptiv (APTV - Free Report) has an Earnings ESP of +7.02% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Waste Connections (WCN - Free Report) has an Earnings ESP of +6.29% and a Zacks Rank #3.

S&P Global (SPGI - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #3.

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