Waste Management, Inc. (NYSE: WM) reported better-than-expected results for the first quarter of 2022. Following the announcement, shares gained 5.3% on Tuesday and another 1.4% today, at the time of writing.
The company provides waste management environmental services ranging from collection and disposal to recycling and renewable energy generation in North America.
Results in Detail
WM reported earnings of $1.29 per share, up 21.7% year-over-year, and beat analysts’ estimates of $1.15 per share. Revenue came in at $4.66 billion, increasing 13.4% compared to the same period last year, and surpassed the consensus estimate of $4.44 billion.
The core price for the first quarter of 2022 came in at 7.3% compared to 3.4% in the same quarter last year. Also, volumes increased 3.6% compared to a decline of 3.3% in the first quarter of 2021.
President and CEO Jim Fish said, “In addition, the key leading performance indicators within our business, such as special waste volumes, construction and demolition volumes, and new business formation, point to continued strong economic activity and business performance for the balance of the year.”
Analyst Recommendation
Following the results, Scotiabank analyst Mark Neville reiterated a Buy rating on the stock while lifting the price target to $180 (7.8% upside potential) from $175.
Overall, the stock has a Moderate Buy consensus rating based on three Buys and seven Holds. The average Waste Management price target of $166.89 is exactly in line with the current share price, offering no implied upside potential. Shares have gained about 25% over the past year.
Crowd Wisdom
TipRanks’ Stock Investors tool helps to track the overall sentiment of investors who hold portfolios on TipRanks’ Smart Portfolio. Currently, these investors have a Very Positive stance on WM, with 13.4% of investors increasing their exposure to the stock over the past 30 days.
Conclusion
Strong results, despite several bottlenecks in the operating environment, make Waste Management an attractive stock. Further, WM scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. However, investors may want to conduct deeper research before investing in the stock.
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