WM Waste Management

By Dave Sebastian

Waste Management Inc. said its profit and sales rose for the first quarter and raised its financial guidance for the year.

The Houston company on Tuesday posted net income attributable to the company of $421 million, up from $361 million in the year-ago period. Earnings were 99 cents a share, compared with 85 cents a share in the prior year.

Adjusted earnings were $1.06 a share. Analysts polled by FactSet were looking for $1.01 a share.

Operating revenue rose to $4.11 billion from $3.73 billion. Analysts were looking for $4.04 billion.

Revenue in the collection and disposal business fell $5 million for the quarter, excluding the effect of acquisitions and divestitures, due to $98 million in volume declines, partially offset by $93 million of growth from yield, the company said.

The company said it expects revenue growth of 12.5% to 13% for the year, compared with a prior outlook of a 10.75% to 11.25% growth. Waste Management expects internal revenue growth from yield and volume in the collection and disposal business to be 4.5% or more, driven by an outlook for continued volume recovery, it said.

The company said it expects adjusted operating earnings before interest, taxes, depreciation and amortization of $4.875 billion to $4.975 billion, compared with its prior estimate of $4.75 billion to $4.9 billion.

Waste Management said it expects free cash flow of between $2.325 billion and $2.425 billion, compared with its prior outlook of $2.25 billion to $2.35 billion.

The company said it expects $130 million in annual run-rate savings from operating costs and selling, general and administrative savings, up more than 60% from its initial estimates. The new estimate includes $75 million to $85 million in run-rate savings captured in 2021, up from its previous guidance of $50 million to $60 million, it said.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

April 27, 2021 07:54 ET (11:54 GMT)

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