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Why Is Waste Connections (WCN) Up 3.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for Waste Connections (WCN - Free Report) . Shares have added about 3.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Waste Connections due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Adjusted earnings of 81 cents per share beat the Zacks Consensus Estimate by 5.2% and increased 35% year over year. Revenues of $1.53 billion beat the consensus mark by 2.2% and rose 17.5% year over year.
Acquisitions contributed $44.1 million to revenues in the reported quarter.
Revenues by Segment
Solid Waste Collection segment revenues increased 15.9% year over year to $1.09 billion.
Solid Waste Disposal and Transfer segment revenues increased 18.9% from the year-ago quarter’s level to $328.78 million.
Solid Waste Recycling segment revenues surged more than 100% year over year to $40.43 million.
Intermodal and Other segment revenues increased 39.1% to $38.49 million.
E&P Waste Treatment, Recovery and Disposal segment revenues declined 12.3% from the year-ago quarter’s level to $35.51 million.
Operating Results
Adjusted EBITDA in the reported quarter was $484.91 million, up 22.9% from the year-ago quarter’s levels. Adjusted EBITDA margin came in at 31.6% compared with 30.2% in the year-ago quarter.
Operating income totaled $266.79 million, compared with an operating loss of $232.36 million in the year-ago quarter.
Balance Sheet and Cash Flow
Waste Connections exited second-quarter 2021 with cash and cash equivalents of $727.39 million compared with $743.46 million at the end of the prior quarter. Long-term debt was $4.76 billion compared with $4.61 billion at the end of the prior quarter.
The company generated $448.08 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $296.05 million. Capital expenditures totaled $174.59 million.
The company paid out dividends worth $53.42 million in the reported quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Waste Connections has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Waste Connections has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Waste Connections (WCN) Up 3.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Waste Connections (WCN - Free Report) . Shares have added about 3.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Waste Connections due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Waste Connections Surpasses Q2 Earnings & Revenues Estimates
Waste Connections reported better-than-expected second-quarter 2021 results.
Adjusted earnings of 81 cents per share beat the Zacks Consensus Estimate by 5.2% and increased 35% year over year. Revenues of $1.53 billion beat the consensus mark by 2.2% and rose 17.5% year over year.
Acquisitions contributed $44.1 million to revenues in the reported quarter.
Revenues by Segment
Solid Waste Collection segment revenues increased 15.9% year over year to $1.09 billion.
Solid Waste Disposal and Transfer segment revenues increased 18.9% from the year-ago quarter’s level to $328.78 million.
Solid Waste Recycling segment revenues surged more than 100% year over year to $40.43 million.
Intermodal and Other segment revenues increased 39.1% to $38.49 million.
E&P Waste Treatment, Recovery and Disposal segment revenues declined 12.3% from the year-ago quarter’s level to $35.51 million.
Operating Results
Adjusted EBITDA in the reported quarter was $484.91 million, up 22.9% from the year-ago quarter’s levels. Adjusted EBITDA margin came in at 31.6% compared with 30.2% in the year-ago quarter.
Operating income totaled $266.79 million, compared with an operating loss of $232.36 million in the year-ago quarter.
Balance Sheet and Cash Flow
Waste Connections exited second-quarter 2021 with cash and cash equivalents of $727.39 million compared with $743.46 million at the end of the prior quarter. Long-term debt was $4.76 billion compared with $4.61 billion at the end of the prior quarter.
The company generated $448.08 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $296.05 million. Capital expenditures totaled $174.59 million.
The company paid out dividends worth $53.42 million in the reported quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Waste Connections has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Waste Connections has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.