Earnings Preview: Allied Waste Industries

Allied Waste Industries (AW) is expected to report Q1 earnings after market close Wednesday, July 30, with a conference call scheduled for 5:00 p.m. ET.

Guidance

Analysts are looking for EPS of 24c on revenue of $1.59B. The consensus range is 23c to 26c for EPS, and $1.58B to $1.61B for revenue, according to First Call. Allied Waste and Republic Services (RSG) and confirmed on June 13, that the two companies are in discussions regarding a possible business combination, the deal was approved on June 23.

Analyst Views

Gabelli stated in June, it believes the merger would increase the companies' pricing power. The firm believes both stocks are cheap, and it believes a merger would improve already positive industry dynamics. Gabelli recommends buying both stocks. UBS however downgraded the company to Neutral from Buy on July 2, citing the merger with Republic. The firm also lowered the company's target to $13.10 from $15.