WM Earnings Prediction
The chart below shows how WM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WM sees a -0.29% change in stock price 10 days leading up to the earnings, and a +2.77% change 10 days following the report. On the earnings day itself, the stock moves by -0.26%. This data can give you a slight idea of what to expect for the next quarter's release.
WM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.89B
12.96%
5.06%
Gross Margin
28.64%
-3.28%
-2.75%
Operating Margin
15.97%
-19.26%
-20.51%
Net Margin
10.15%
12.90%
-25.09%
EPS
1.48
21.31%
-21.28%
No Data Available
WM Earnings Analysis
Waste Management Inc Corporation (WM.N) Earnings Conference Call
Positive
Legacy Business EBITDA Milestone: Operating EBITDA growth of more than 10% in the legacy business for 2024, achieving a full year operating EBITDA margin of 30% for the first time in history.
Operating EBITDA Growth: The collection and disposal business achieved a 10.4% growth in operating EBITDA in 2024, with a record margin of 37.2%, resulting in nearly $700 million in operating EBITDA growth.
Cash Flow Growth: Cash flow from operations grew more than 14% to $5.39 billion, while free cash flow before sustainability growth investments reached $3.27 billion, marking a 22.5% increase over 2023.
Acquisition Synergies and Growth: The successful completion of the Stericycle acquisition is expected to contribute $100 million in synergies in 2025, with the WM Healthcare Solutions business projected to grow about 9% before synergies.
EBITDA Growth Projection: Total company operating EBITDA growth is expected to reach 15% in 2025, translating to nearly $1 billion of growth compared to 2024.
Negative
EBITDA Growth vs. Tax Credit Loss: Operating EBITDA growth of 10% in the legacy business was overshadowed by a $63 million headwind from the expiration of alternative fuel tax credits, impacting overall profitability.
Operating Expenses Increase: Operating expenses as a percentage of revenue were 60.3%, indicating a slight increase in operational costs despite previous improvements, which could pressure margins in the future.
Increased Compensation Costs: The addition of Stericycle resulted in increased incentive compensation costs and higher employee health and welfare costs, negatively impacting margins by approximately 30 basis points.
Industrial Business Challenges: The industrial business remains soft, with no expected rebound in 2025, indicating ongoing challenges in capturing volume and revenue in this segment.
Increased Cash Interest Expenses: The company anticipates a $100 million increase in cash interest expenses in 2025, primarily due to the Stericycle acquisition, which will further strain financial performance.
WM FAQs
How does WM typically perform around its earnings report dates?
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WM Earning Call Sentiment
Earnings call transcript: Waste Management Q4 2024 misses EPS forecast
WM.N
0.33%Positive
The earnings call summary indicates strong financial performance, with double-digit EBITDA growth, strategic acquisitions, and sustainability investments. Despite some headwinds like the CNG tax credit, the company shows robust revenue growth and margin improvement. The Q&A reveals management's confidence in overcoming challenges, although some responses lacked clarity. Overall, the positive guidance, growth in healthcare solutions, and sustainability contributions suggest a positive stock price movement in the short term.
