Earnings Preview: Waste Management

Waste Management (WMI) is expected to report Q3 earnings before market open Thursday, October 30, with a conference call scheduled for 10:00 am.

Guidance

Analysts are looking for EPS of 61c on revenue of $3.52B. The consensus range is 58c to 62c for EPS, and $3.5B to $3.53B for revenue, according to First Call. The company gave FY08 EPS guidance when it reported its Q2 earnings results, expecting FY08 EPS of $2.19 to $2.23 vs. consensus $2.26. They also announced Q3 EPS and revenue guidance on October 13. The company expects Q3 EPS of 62c to 63c vs. consensus 61c, and Q3 revenue of $3.53B vs. consensus $3.52B.

Analyst Views

Citigroup added the company to its Top Picks Live List in August. The firm finds the risk/reward compelling at current levels. The firm maintained its target of $47 and its Buy rating for the company's shares. Waste Management announced this month that it was withdrawing its proposal to acquire all of the outstanding shares of Republic Services (RSG) for $37 per share. On October 20 the company was added to Goldman Sachs Conviction Buy List which maintained its Buy rating for the stock.