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What's in the Offing for Waste Management (WM) in Q2 Earnings?

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The Waste Management, Inc. (WM - Free Report) is scheduled to release its second-quarter 2023 results on Jul 25, after market close.

WM has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the four trailing quarters and missing on one instance. The average surprise is 1.6%.

Q2 Expectations

The Zacks Consensus Estimate for the top line is currently pegged at $5.21 billion, up 3.7% from the year-ago actual figure. The company’s recurring revenue stream and expected organic growth are likely to have driven such an increase.

Waste Management, Inc. Price and EPS Surprise

 

Waste Management, Inc. Price and EPS Surprise

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

The consensus estimate for earnings per share is pegged at $1.53, up 6.3% year over year. The increase can be due to the company’s strong price discipline.

Segmental Expectations

Our estimate for second-quarter 2023 revenues from Collection and Disposal is currently pegged at $3.51 billion, up 5.9% from the second-quarter 2022 reported figure. The increase can be attributed to the likely continuation of strong organic growth in the segment.

Our estimate for Landfill’s revenues is currently pegged at $1.22 billion, 2.5% higher than the year-ago reported figure. The growth can be due to the expected increase in bookings. Our estimate for Transfer and Recycling revenues are respectively pegged at $572.2 million, 3.3% higher than the year-ago figure, and $417.9 million, indicating a 10.7% decrease from the year-ago reported figure. Post-collection pricing is likely to have been the reason for such growth.

Our estimate for adjusted EBITDA for the second quarter is pegged at $1.49 billion, indicating 5% growth from the year-ago figure.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for WM 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 before they’re reported with our Earnings ESP Filter.

WM has an Earnings ESP of -0.22% and a Zacks Rank of 3.

Stocks to Consider

Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.

Aptiv (APTV - Free Report) currently has a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the bottom line is pegged at $1.01 per share, up more than 100% from the year-ago figure. The consensus mark for revenues is pegged at $4.7 billion, up 15.8% from the figure reported a year ago. APTV had an average negative surprise of 8.1% in the previous four quarters.

APTV has an Earnings ESP of +12.88. The company is scheduled to release its second-quarter earnings on Aug 3.

Avis Budget (CAR - Free Report) currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for earnings is pegged at $9.78 per share, down 38.6% from the year-ago figure. The consensus mark for revenues is pegged at $3.19 billion, down 1.6% from the prior-year figure. CAR had an average surprise of 65.2% in the previous four quarters.

CAR has an Earnings ESP of +1.46. The company is scheduled to report its second-quarter results on Jul 31.

S&P Global (SPGI - Free Report) currently has a Zacks Rank of 2. The Zacks Consensus Estimate for the bottom line is pegged at $3.11 per share, up 10.7% from the year-ago reported figure. The consensus mark for revenues is pegged at $3.06 billion, up 2.3% from the prior-year reported figure. SPGI had an average surprise of 3.1% in the previous four quarters.

SPGI has an Earnings ESP of +1.58. The company will declare its second-quarter results on Jul 27.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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