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Waste Connections (WCN) Beats on Q3 Earnings, Raises '21 View
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Waste Connections, Inc. (WCN - Free Report) reported solid third-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
Adjusted earnings (excluding 45 cents from non-recurring items) of 89 cents per share beat the Zacks Consensus Estimate by 4.7% and increased 23.6% year over year. Revenues of $1.6 billion topped the consensus mark by 1.8% and rose 14.9% year over year.
Acquisitions contributed $51.4 million to revenues in the reported quarter.
So far this year, shares of Waste Connections have gained 27.7% against a 2.6% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Revenues by Segment
The Solid Waste Collection segment’s revenues increased 12.7% year over year to $1.13 billion.
The Solid Waste Disposal and Transfer segment’s revenues increased 7.9% from the year-ago quarter’s level to $336.1 million.
The Solid Waste Recycling segment’s revenues surged more than 100% year over year to $54.4 million.
The Intermodal and Other segment’s revenues increased 38.7% to $37.6 million.
The E&P Waste Treatment, Recovery and Disposal segment’s revenues soared 48.3% from the year-ago quarter’s level to $35 million.
Waste Connections, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA in the reported quarter was $505.6 million, up 16.9% from the year-ago quarter’s levels. Adjusted EBITDA margin came in at 31.7% compared with 31.1% in the year-ago quarter.
Operating income totaled $285.1 million compared with $230.7 million in the prior-year quarter.
Balance Sheet and Cash Flow
Waste Connections exited third-quarter 2021 with cash and cash equivalents of $339.5 million compared with $727.39 million at the end of the prior quarter. Long-term debt was $4.87 billion compared with $4.76 billion at the end of the last reported quarter.
The company generated $421.5 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $240 million. Capital expenditures totaled $208.1 million.
Waste Connections’ board of directors approved a 12.2% increase in the quarterly cash dividend to 23 cents per share. The dividend will be paid out on Nov 23, 2021, to shareholders on record as of Nov 9, 2021.
Raised 2021 Guidance
The estimates below are updated from August 2021.
Revenues are estimated at approximately $6.11 billion (previous outlook: $5.975 billion), higher than the Zacks Consensus Estimate of $6.05 billion.
Adjusted EBITDA is expected to be at $1.91 billion (previous outlook: $1.875 billion).
Capital expenditures are estimated at approximately $700 million (previous outlook: $675 million).
Net cash from operating activities is estimated at $1.689 billion (previous outlook: $1.666 billion).
Adjusted free cash flow is estimated at approximately $1.025 billion (previous outlook: $1 billion).
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6%. The bottom line declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6%. The top line increased 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and rose 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1%. The top line increased 21.7% year over year on a reported basis and 21.1% on a constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
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Waste Connections (WCN) Beats on Q3 Earnings, Raises '21 View
Waste Connections, Inc. (WCN - Free Report) reported solid third-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
Adjusted earnings (excluding 45 cents from non-recurring items) of 89 cents per share beat the Zacks Consensus Estimate by 4.7% and increased 23.6% year over year. Revenues of $1.6 billion topped the consensus mark by 1.8% and rose 14.9% year over year.
Acquisitions contributed $51.4 million to revenues in the reported quarter.
So far this year, shares of Waste Connections have gained 27.7% against a 2.6% decline of the industry it belongs to.
Revenues by Segment
The Solid Waste Collection segment’s revenues increased 12.7% year over year to $1.13 billion.
The Solid Waste Disposal and Transfer segment’s revenues increased 7.9% from the year-ago quarter’s level to $336.1 million.
The Solid Waste Recycling segment’s revenues surged more than 100% year over year to $54.4 million.
The Intermodal and Other segment’s revenues increased 38.7% to $37.6 million.
The E&P Waste Treatment, Recovery and Disposal segment’s revenues soared 48.3% from the year-ago quarter’s level to $35 million.
Waste Connections, Inc. Price, Consensus and EPS Surprise
Waste Connections, Inc. price-consensus-eps-surprise-chart | Waste Connections, Inc. Quote
Operating Results
Adjusted EBITDA in the reported quarter was $505.6 million, up 16.9% from the year-ago quarter’s levels. Adjusted EBITDA margin came in at 31.7% compared with 31.1% in the year-ago quarter.
Operating income totaled $285.1 million compared with $230.7 million in the prior-year quarter.
Balance Sheet and Cash Flow
Waste Connections exited third-quarter 2021 with cash and cash equivalents of $339.5 million compared with $727.39 million at the end of the prior quarter. Long-term debt was $4.87 billion compared with $4.76 billion at the end of the last reported quarter.
The company generated $421.5 million of cash from operating activities in the reported quarter. Adjusted free cash flow was $240 million. Capital expenditures totaled $208.1 million.
The company paid out dividends worth $53.3 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.
Dividend Hike
Waste Connections’ board of directors approved a 12.2% increase in the quarterly cash dividend to 23 cents per share. The dividend will be paid out on Nov 23, 2021, to shareholders on record as of Nov 9, 2021.
Raised 2021 Guidance
The estimates below are updated from August 2021.
Revenues are estimated at approximately $6.11 billion (previous outlook: $5.975 billion), higher than the Zacks Consensus Estimate of $6.05 billion.
Adjusted EBITDA is expected to be at $1.91 billion (previous outlook: $1.875 billion).
Capital expenditures are estimated at approximately $700 million (previous outlook: $675 million).
Net cash from operating activities is estimated at $1.689 billion (previous outlook: $1.666 billion).
Adjusted free cash flow is estimated at approximately $1.025 billion (previous outlook: $1 billion).
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6%. The bottom line declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6%. The top line increased 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and rose 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1%. The top line increased 21.7% year over year on a reported basis and 21.1% on a constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.