WM Earnings Beat Estimates in Q1, Revenues Appreciate 17% Y/Y

WM WM reported mixed first-quarter 2025 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.WM’s quarterly adjusted earnings of $1.67 per share surpassed the consensus mark by 1.2% but declined 4.6% year over year. Total revenues of $6 billion missed the consensus mark by a 1.3% margin but grew 16.7% from the year-ago quarter.The stock has gained 7.4% in the past six months, outperforming 3.6% growth of its industry and the 4.1% decline of the Zacks S&P 500 Composite.Waste Management, Inc. Price, Consensus and EPS Surprise  Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. QuoteWM’s Quarterly Numbers in DetailThe Collection segment recorded revenues of $4.3 billion, increasing 4.7% from the year-ago quarter’s actual and missing our estimate of $4.7 billion. The Landfill segment’s top line gained 3.6% year over year to $1.2 billion and lagged our projection of $1.4 billion. Total revenues in the Transfer segment increased 5.7% to $592 million, missing our estimate of $681.4 million. The Recycling Processing and Sales segment’s revenues rose 6.7% to $465 million and missed our estimate of $526.3 million.WM Renewable Energy registered revenues of $92 million, rising 31.4% from the year-ago quarter and outpacing our estimate of $89 million. WM Healthcare Solutions Corporate and Other recorded $627 million in revenues, surpassing our estimate of $121 million. The figures are before the alignment of intercompany adjustment.The adjusted operating EBITDA was $1.7 billion, which missed our estimate of $1.8 billion and rose 12.2% from the year-ago quarter. The adjusted operating EBITDA margin decreased 110 basis points to 28.5% from the year-ago quarter and lagged our estimate of 30.1%.Cash Flow of WMWM generated $1.2 billion in cash from operating activities in the reported quarter, while capital expenditure was $831 million. The free cash flow was $475 million. In the first quarter of 2025, $336 million in cash dividends were distributed to shareholders.WM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotRepublic Services, Inc. RSG reported mixed first-quarter 2025 results.RSG’s earnings per share of $1.58 outpaced the Zacks Consensus Estimate by 4% and gained 9% from the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Revenues of $4 billion missed the consensus mark by a slight margin but increased 3.8% year over year.The Interpublic Group of Companies, Inc. IPG posted mixed first-quarter 2025 results.IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter.Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 8.3% year over year.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interpublic Group of Companies, Inc. (The) (IPG): Free Stock Analysis Report Waste Management, Inc. (WM): Free Stock Analysis Report Republic Services, Inc. (RSG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks