Credit: Shutterstock photoSummary:
Waste Management reported modest third quarter 2014 results with a year-over-year decrease in both revenues and earnings. However, adjusted earnings exceeded the Zacks Consensus Estimate by $0.04. The company is continuing with its restructuring initiatives, which are likely to reap benefits in the long run. Waste Management is also taking adequate measures to improve its yield and at the same time remains focused on controlling its costs. The company continues to return significant cash to shareholders through dividend and share repurchases. However, high market price volatility and huge integration costs related to acquisition could impair its long-term profitability to some extent. Nevertheless, we maintain our long-term Neutral recommendation for the stock.
Overview:
Headquartered in Houston, Texas, Waste Management Inc. is the largest provider of comprehensive waste management services in North America. The company provides collection, transfer, recycling and resource recovery, as well as disposal services to nearly 20 million residential, commercial, industrial and municipal customers. It is also a leading developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the U.S.
Currently, Waste Management has five operating groups, including Eastern, Midwest, Southern, Western, and the Wheelabrator. The Wheelabrator group includes the company's waste-to-energy facilities and independent power production plants. The company also has a joint venture with Linde Group, which includes plant that converts landfill gas into liquefied natural gas for use as fuel in the company's trucks.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
