WCN Earnings Prediction
The chart below shows how WCN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WCN sees a -0.32% change in stock price 10 days leading up to the earnings, and a +0.07% change 10 days following the report. On the earnings day itself, the stock moves by +0.17%. This data can give you a slight idea of what to expect for the next quarter's release.
WCN Key Earning Data
WCN Earnings Analysis
Positive
Q3 Revenue Surge: 1. Strong Revenue Growth: Waste Connections reported Q3 2024 revenue of $2.338 billion, an increase of $274 million or 13.3% year-over-year, exceeding expectations.
Adjusted EBITDA Margin Increase: 2. Improved Adjusted EBITDA Margin: The adjusted EBITDA margin for Q3 was 33.7%, up 120 basis points year-over-year, reflecting strong operational execution despite acquisition-related dilution.
Acquisition Revenue Impact: 3. Significant Acquisition Contributions: The company has signed or closed over $700 million in annualized private company revenue from acquisitions in 2024, contributing approximately 2% or more in acquisition rollover for 2025.
Dividend Increase Announcement: 4. Increased Cash Dividend: Waste Connections announced a 10.5% increase to its quarterly cash dividend, marking the 14th consecutive annual double-digit increase since the initiation of the dividend in 2010.
Employee Turnover Reduction: 5. Reduction in Employee Turnover: Voluntary turnover improved for the eighth consecutive quarter, with a total reduction of over 40% from peak levels in 2022, enhancing operational stability.
Negative
Special Waste Volume Decline: 1. Declining Special Waste Volumes: Special waste tons decreased by 10% year-over-year, indicating ongoing challenges in this segment despite some sequential improvement.
Decline in Roll-off Demand: 2. Weak Roll-off Pulls: Roll-off pulls per day were down 3% year-over-year, reflecting a decline in demand for this service.
Commodity Price Decline: 3. Commodity Price Weakness: Commodity values have dropped by approximately 15% since quarter-end, with expectations of an additional 5% to 10% reduction in Q4, negatively impacting revenue.
Rising Interest Expenses: 4. Increased Interest Expense: Net interest expense rose to $80.2 million, reflecting a weighted average cost of debt just over 4%, which could pressure profitability.
Margin Dilution Challenges: 5. Ongoing Margin Dilution from Acquisitions: The adjusted EBITDA margin was impacted by incremental costs associated with acquisitions, indicating challenges in maintaining margins amidst growth efforts.
WCN FAQs
How does WCN typically perform around its earnings report dates?
WCN's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -0.32% change leading up to the report and a +0.07% change in the 10 days following the release.
Is Waste Connections, Inc. (WCN) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
WCN Earning Call Sentiment
Waste Connections, Inc. (WCN) Q3 2024 Earnings Call Transcript
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