Waste Management (WM) - Get Report shares rose Monday after the company’s third-quarter profit missed Wall Street's estimates on revenue that was stronger than expected despite the economic damage from the coronavirus pandemic.
Shares of the Houston environmental-services provider recently traded little changed at $108. They have dipped 5% year to date, as the pandemic has damped demand.
Revenue registered $3.86 billion in the quarter, down 3% from $3.97 billion in the year-earlier quarter. The FactSet analyst consensus called for $3.73 billion in the latest quarter.
Net income totaled $390 million, or 92 cents a share, down from $495 million, or $1.16 a share, a year earlier. Analysts in the FactSet survey predicted 99 cents a share, or an adjusted $1.02, for the latest quarter.
“We’ve consistently pointed to operating Ebitda as the best measure of the health of our business, and despite the challenging backdrop, we delivered third-quarter adjusted operating Ebitda results in line with last year’s record performance and expanded adjusted operating Ebitda margin by 70 basis points,” Chief Executive Jim Fish said in a statement.
This reflects "our team’s ability to optimize our business in the new environment as well as the progress of economic recovery in North America.”
Waste Management posted Ebitda of $1.1 billion and adjusted Ebitda of $1.14 billion in the third quarter, compared with $1.14 billion and $1.14 billion a year earlier.
The company expects to exceed its guidance of 2020 adjusted operating Ebitda margin of 28% to 28.5% and to generate free cash flow in excess of $2 billion.