Waste Management -4.6% after results, guidance miss expectations

Waste Management (WM -4.6%) shares sink after the company’s Q4 results and FY 2014 guidance missed consensus estimates.

Recycling operations hurt earnings by $0.03/share during Q4 and $0.12/share for the full year, $0.10 more than expected.

Internal revenue growth from yield for collection and disposal operations was 2.4% during Q4 vs. a yield of 0.9% in the year-ago period; expects 2014 internal revenue growth from yield on the collection and disposal business of ~2% and internal revenue growth from volume of -1%.

WM's 2014 outlook projects adjusted EPS of $2.30-$2.35, below the $2.41 estimated by analysts.

Wedbush maintains a Neutral rating on WM shares with a 12-month price target of $40, but says its estimates and rating were under review.

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Comments (2)
  • wyostocks
    , contributor
    Comments (9115) | Send Message
    I sold this a few months back when IMO it got over valued.


    I wonder if this is a good point to get back in. Mmmmmmmmm.
    18 Feb 2014, 12:52 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4381) | Send Message
    "Internal revenue growth from volume was negative 2.2% for the fourth quarter, or negative 1.5% excluding volumes from Superstorm Sandy in the fourth quarter of 2012. For the full year, internal revenue growth from volume was a negative 1.0%."


    In other words, WM did not pick up as much garbage as last year (down 1% for the year). That's not a good sign for the economy.
    18 Feb 2014, 01:04 PM Reply Like
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