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Waste Connections (WCN) Q1 Earnings Top Estimates, Up 7.7% Y/Y

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Waste Connections Inc. (WCN - Free Report) reported better-than-expected first-quarter 2021 results.

Adjusted earnings (excluding 9 cents from non-recurring items) of 70 cents per share beat the Zacks Consensus Estimate by 4.5% and increased 7.7% year over year. Revenues of $1.39 billion beat the consensus mark by 1.5% and rose 3.2% year over year.

Acquisitions contributed $40.5 million to revenues in the reported quarter.
In the past year, shares of Waste Connection have surged 36.4% compared with 35.4% increase of the industry it belongs to.

Let’s check out the numbers in detail.

Revenues by Segment

Solid Waste Collection segment revenues increased 4.8% year over year to $1.03 billion. The segment contributed 74% to total revenues.

Solid Waste Disposal and Transfer segment revenues increased 4.2% from the year-ago quarter’s level to $270.8 million. The segment contributed 19.4% to total revenues.

Intermodal and Other segment revenues increased 18.7% to $35.6 million. The segment contributed r 2.5% to total revenues.

Waste Connections, Inc. Price, Consensus and EPS Surprise

 

Waste Connections, Inc. Price, Consensus and EPS Surprise

Waste Connections, Inc. price-consensus-eps-surprise-chart | Waste Connections, Inc. Quote

 

Solid Waste Recycling segment revenues surged 79.2% year over year to $31.45 million. The segment contributed 2.25% to total revenues.

E&P Waste Treatment, Recovery and Disposal segment revenues declined 58.4% from the year-ago quarter’s level to $24.66 million. The segment contributed 1.8% to total revenues.

Operating Results

Adjusted EBITDA in the reported quarter was $433.2 million, up 6% from the year-ago quarter’s levels. Adjusted EBITDA margin came in at 31% compared with 30.2% in the year-ago quarter.

Operating income totaled $238.4 million, up 9.8% from the year-ago quarter’s figures. Operating income margin came in at 17.1% compared with 16% in the year-ago quarter.

Balance Sheet and Cash Flow

Waste Connections exited first-quarter 2021 with cash and cash equivalents of $743.46 million compared with $617.29 million at the end of the prior quarter. Long-term debt was $4.61 billion compared with $4.71 billion at the end of the prior quarter.

The company generated $400.4 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $289.8 million. Capital expenditures totaled $96.79 million.

The company paid out dividend of $53.9 million in the reported quarter.

Currently, Waste Connections carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.

Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.

Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.

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