Waste Management(WM) ZACKS·2025-01-30 18:16Core Viewpoint - WM reported mixed fourth-quarter 2024 results, with earnings missing the consensus estimate while revenues exceeded expectations [1][2]. Financial Performance - Adjusted earnings per share were $1.7, missing the consensus by 5% and declining 2.3% year over year [2]. - Total revenues reached $5.9 billion, surpassing the consensus estimate and growing 13% from the previous year [2]. - The Collection segment generated revenues of $4.3 billion, a 3.7% increase year over year, but fell short of the $4.6 billion estimate [5]. - The Landfill segment's revenues increased 6% to $1.2 billion, missing the $1.4 billion projection [5]. - The Transfer segment saw revenues rise 9.6% to $629 million, below the $654.9 million estimate [5]. - The Recycling Processing and Sales segment's revenues grew 12.8% to $476 million, missing the $501.9 million projection [5]. - Adjusted operating EBITDA was $1.6 billion, missing the estimate of $1.7 billion but increasing 19.8% year over year [6]. - The adjusted operating EBITDA margin increased by 160 basis points to 26.7%, missing the projected 29.6% [6]. Cash Flow and Dividends - WM generated $1.5 billion in cash from operating activities, with capital expenditures of $1.1 billion, resulting in free cash flow of $455 million [7]. - The company distributed $301 million in cash dividends to shareholders during the fourth quarter [7]. 2024 Outlook - WM anticipates revenues between $25.55 billion and $25.80 billion for 2024, exceeding the Zacks Consensus Estimate of $22.05 billion [9]. - Adjusted operating EBITDA is expected to be in the range of $7.45 billion to $7.65 billion [9]. - WM currently holds a Zacks Rank 3 (Hold) [9].