Waste Management Shares Lower After Earnings Miss
October 26 2021 - 11:26AM
Dow Jones News
By Michael Dabaie
Waste Management Inc. shares were down 3% to $156.50 after
third-quarter adjusted earnings missed analyst views and the
company said it is seeing labor constraints.
Before the market open, the provider of waste management
environmental services reported third-quarter revenue of $4.7
billion, up from $3.9 billion a year earlier and above FactSet
consensus for $4.5 billion.
Adjusted earnings per share of $1.26 fell short of FactSet
consensus of $1.35.
"Like many other companies, we are seeing constraints on labor
availability," said Chief Executive Jim Fish.
During the quarter, the company invested in front-line market
wage adjustments and training for new employees.
"We remain focused on improving operational efficiency and
executing on our disciplined pricing programs to drive margin
growth in the face of these additional labor costs and other
inflationary cost pressures," Mr. Fish said.
Waste Management guided for total company revenue growth in 2021
between 17% and 17.5%. In late July, the company guided for revenue
growth of 15.5% to 16.0%.
"WM reported an adjusted EPS miss blamed on higher costs (labor,
other inflationary cost pressures). However, revenues were better
than expected mainly driven by strong yield; this helped drive
better-than-expected free cash flow," BMO Capital Markets said in a
note after the earnings report.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
October 26, 2021 11:11 ET (15:11 GMT)
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