Earnings Preview: Waste Management Inc.

Waste Management (WMI) is expected to report Q1 earnings with a conference call scheduled for 10:00 am ET.

Guidance

Analysts are looking for EPS of 59c on revenue of $3.43B. The consensus range is 57c to 61c for EPS, and $3.34B to $3.49B for revenue, according to First Call.

Analyst Views

On July 14 the company gave Q2 guidance, expecting Q2 EPS of 61c to 62c vs. consensus of 59c and Q2 revenue $3.49B vs. consensus of $3.43. On July 14 Waste Management announced that it made a proposal to the board of Republic Services (RSG) to acquire all of Republic's outstanding common stock for $34 per share in cash, an offer that Republic declined on July 18. Friedman Billings stated on July 28, after Republic Services officially turned down the company's $34 per share bid, it believes the company needs to put in a bid in the $38 to $40 range in order for its offer to be accepted. The firm feels with management having pre-announced on July 14th, stronger-than-expected EPS, results should have a limited impact on the shares. Friedman Billings reiterated its $47 target price and its Outperform rating.