For the fourth quarter Waste Management reported earnings of 56 cents a share, missing analyst estimates of 60 cents a share by 4 cents. Revenue rose 1.9% from a year earlier to $3.5 billion, compared to analyst expectations of $3.58 billion.
Waste Management expected earnings between $2.30 and $2.35 for the full-year 2014. Analysts expect $2.41 a share for the year.
While the company couldn't meet analyst expectations, it did announce a 2.7% increase in its planned quarterly dividend to 37.5 cents a share from 36.5 cents a share.
Waste Management also said that its board of directors has authorized the purchase of up to $600 million of the company's common stock.
TheStreet Ratings team rates WASTE MANAGEMENT INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate WASTE MANAGEMENT INC (WM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, revenue growth, reasonable valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Services & Supplies industry average. The net income increased by 36.0% when compared to the same quarter one year prior, rising from $214.00 million to $291.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 4.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $736.00 million or 28.22% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 9.32%.
- You can view the full analysis from the report here: WM Ratings Report