Market Overview - U.S. stock futures showed mixed movements following a positive trading session on Monday, where benchmark indices reached new records due to successful trade negotiations with China [1] - The Federal Reserve is expected to announce a decision on interest rates, with a 97.8% likelihood of a cut in the October meeting [2] - Major indices' futures showed slight declines for Dow Jones and S&P 500, while Nasdaq 100 saw a minor increase [2] Company Earnings and Performance - United Parcel Service (UPS) is expected to report earnings of $1.31 per share on revenue of $20.83 billion, with a short-term stronger price trend but weaker medium and long-term trends [5] - UnitedHealth Group (UNH) anticipates earnings of $2.81 per share on revenue of $113.06 billion, showing a strong medium and short-term price trend but weaker long-term performance [5] - Cameco Corp. (CCJ) rose 9.67% and Brookfield Asset Management (BAM) advanced 3.52% after announcing a partnership with the U.S. Government for $80 billion in new nuclear reactors, maintaining a strong price trend [5] - 3D Systems Corp. (DDD) gained 9.45% due to significant milestones in its Saudi joint venture, indicating a strong price trend across all time frames [5] - Waste Management Inc. (WM) shares dropped 2.51% after reporting weaker-than-expected third-quarter results, maintaining a poor growth ranking [6] Sector Performance - Information technology, communication services, and consumer discretionary sectors recorded the biggest gains, contributing to a positive close for most sectors on the S&P 500 [7] - Consumer staples and materials sectors, however, closed lower, bucking the overall market trend [7] Analyst Insights - Professor Jeremy Siegel highlighted robust corporate profits as a key driver for the market, expecting a 25-basis point cut from the Federal Open Market Committee [9] - Siegel noted that earnings are strong and the real economy looks good, despite some tariff-related price noise being temporary [10] - Cautious market sentiment persists, with positioning remaining hedged and skeptical, which Siegel views as a healthy sign for future growth [11]

Market Overview - U.S. stock futures showed mixed movements following a positive trading session on Monday, where benchmark indices reached new records due to successful trade negotiations with China [1] - The Federal Reserve is expected to announce a decision on interest rates, with a 97.8% likelihood of a cut in the October meeting [2] - Major indices' futures showed slight declines for Dow Jones and S&P 500, while Nasdaq 100 saw a minor increase [2] Company Earnings and Performance - United Parcel Service (UPS) is expected to report earnings of $1.31 per share on revenue of $20.83 billion, with a short-term strong price trend but weak medium and long-term trends [5] - UnitedHealth Group (UNH) anticipates earnings of $2.81 per share on revenue of $113.06 billion, showing a strong medium and short-term price trend but weaker long-term performance [5] - Cameco Corp. (CCJ) rose 9.67% and Brookfield Asset Management (BAM) advanced 3.52% after announcing a partnership with the U.S. Government for $80 billion in new nuclear reactors, maintaining a strong price trend [5] - 3D Systems Corp. (DDD) gained 9.45% due to significant milestones in its Saudi joint venture, indicating a strong price trend across all time frames [5] - Waste Management Inc. (WM) shares fell 2.51% after reporting weaker-than-expected third-quarter results, maintaining a poor growth ranking [6] Sector Performance - Information technology, communication services, and consumer discretionary sectors recorded the biggest gains, contributing to a positive close for most sectors on the S&P 500 [7] - Consumer staples and materials sectors, however, closed lower, bucking the overall market trend [7] Analyst Insights - Professor Jeremy Siegel highlighted robust corporate profits as a key driver for the market, expecting a 25-basis point cut from the Federal Open Market Committee [9] - Siegel noted that earnings are strong and the real economy looks good, despite some tariff-related price noise being temporary [10] - Sentiment remains cautious, with positioning still hedged, which Siegel views as a healthy sign for the market's future [11]

Group 1 - The core point of the article is that Waste Management (WM.US) reported disappointing third-quarter earnings, leading to a pre-market drop in stock price [1] - The company reported third-quarter revenue of $6.44 billion, which was below the FactSet estimate of $6.50 billion [1] - Adjusted earnings per share for the third quarter were $1.98, falling short of the IBES estimate of $2.02 [1] Group 2 - The company has lowered its full-year revenue forecast to the lower end of previous predictions due to a further decline in recycling commodity prices [1] - The stock closed at $213.77, down 0.41%, and pre-market trading showed a drop of 2.81% to $207.76 [1] - The company's market capitalization stands at $86.11 billion, with a 52-week high of $240.84 and a low of $197.52 [1]

Core Insights - Waste Management (WM) reported revenue of $6.44 billion for the quarter ended September 2025, reflecting a year-over-year increase of 14.9% [1] - Earnings per share (EPS) for the quarter was $1.98, slightly up from $1.96 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $6.49 billion, resulting in a surprise of -0.71% [1] - EPS also missed the consensus estimate of $2.01, with a surprise of -1.49% [1] Financial Performance Metrics - Internal Revenue Growth (Total) was 14.9%, compared to the average estimate of 15.8% from six analysts [4] - Internal Revenue Growth (Volume) was 0.8%, exceeding the average estimate of 0.4% from four analysts [4] - Internal Revenue Growth (Internal) was 3%, below the average estimate of 4.9% from four analysts [4] - Internal Revenue Growth (Acquisitions) was 11.9%, surpassing the average estimate of 10.5% from three analysts [4] - Total average yield was 2.2%, significantly lower than the average estimate of 5.6% from two analysts [4] Segment Performance - Operating revenues from WM Renewable Energy were $115 million, below the average estimate of $129.5 million, but showed a year-over-year increase of 32.2% [4] - Operating revenues from WM Healthcare Solutions reached $628 million, exceeding the estimated $587.33 million [4] - Operating revenues from Recycling Processing and Sales were $372 million, falling short of the estimated $395.44 million, representing a year-over-year decline of 13.9% [4] - Operating revenues from Corporate and Other were $7 million, above the average estimate of $5.7 million, with a year-over-year increase of 16.7% [4] Stock Performance - Shares of Waste Management have returned -1.8% over the past month, while the Zacks S&P 500 composite increased by 2.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Waste Management (WM) reported quarterly earnings of $1.98 per share, missing the Zacks Consensus Estimate of $2.01 per share, but showing an increase from $1.96 per share a year ago, resulting in an earnings surprise of -1.49% [1] - The company posted revenues of $6.44 billion for the quarter ended September 2025, which was below the Zacks Consensus Estimate by 0.71%, but an increase from $5.61 billion year-over-year [2] - Waste Management shares have increased by approximately 6.4% since the beginning of the year, underperforming compared to the S&P 500's gain of 15.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.00 on revenues of $6.48 billion, and for the current fiscal year, it is $7.55 on revenues of $25.36 billion [7] - The estimate revisions trend for Waste Management was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Waste Removal Services industry, to which Waste Management belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Waste Management reported a miss on both earnings per share (EPS) and revenue, leading to a downward revision of its full-year guidance to the low end due to ongoing weakness in the recycling sector [1] Financial Performance - The company experienced a decline in EPS and revenue, indicating challenges in its operational performance [1] - Full-year guidance has been adjusted to reflect a more conservative outlook, particularly influenced by the recycling market's struggles [1] Industry Context - The recycling sector is facing significant challenges, which have adversely impacted Waste Management's financial results [1] - The overall industry may be experiencing similar pressures, suggesting a broader trend affecting waste management and recycling services [1]

Revenue Performance - Total revenue for Q3 2025 was $6,443 million, representing a 14.9% increase from $5,609 million in Q3 2024[2] - Operating revenues for Q3 2025 reached $6,443 million, a 14.8% increase from $5,609 million in Q3 2024[26] - Total operating revenues for the three months ended September 30, 2025, were $7,908 million, a decrease of 1,465 million compared to $6,443 million in 2024[32] - Gross operating revenues for the three months ended September 30, 2025, totaled $7,170 million, compared to $6,840 million in the same period of 2024, marking an increase of 4.8%[50] - Reported gross operating revenues for the three months ended September 30, 2025, were $7,170 million, compared to $6,840 million for the same period in 2024, representing a year-over-year increase of 4.8%[53] EBITDA and Profitability - Adjusted operating EBITDA for the WM Legacy Business grew 8.7%, with a margin of 28.0% in Q3 2025 compared to 29.9% in Q3 2024[4] - The Collection and Disposal business achieved an operating EBITDA margin of 37.5%, driven by technology improvements and disciplined pricing[4] - The company is affirming its adjusted operating EBITDA guidance of between $7.475 and $7.625 billion for 2025[11] - Adjusted operating EBITDA for the three months ended September 30, 2025, was $1,970 million, with an adjusted operating EBITDA margin of 30.6%[48] - Recycling commodity rebates contributed $177 million to adjusted operating EBITDA for the three months ended September 30, 2025, with a margin change of 0.8%[59] Cash Flow and Liquidity - Free cash flow for the first nine months of 2025 was $2.11 billion, a 13.5% year-over-year increase[12] - Free cash flow for the nine months ended September 30, 2025, was $4,345 million, up from $3,879 million in 2024, indicating improved liquidity[30] - Free cash flow for the three months ended September 30, 2025, was $821 million, up from $618 million in 2024[42] - The company projected free cash flow for 2025 to be between $2,800 million and $2,900 million, with capital expenditures supporting the business estimated at $2,575 million to $2,625 million[53][54] - The company reported a net cash provided by operating activities of $5,860 million for the projected free cash flow scenario[53] Income and Earnings - Consolidated net income for the nine months ended September 30, 2025, was $1,967 million, compared to $2,147 million for the same period in 2024, reflecting a decrease of 8.4%[30] - Basic earnings per common share for Q3 2025 were $1.50, compared to $1.89 in Q3 2024, reflecting a decrease of 20.6%[26] - The company reported a net income of $603 million for the three months ended September 30, 2025, compared to $760 million in the same period of 2024, a decrease of 20.7%[48] Expenses and Cost Management - Operating expenses as a percentage of revenue for the WM Legacy Business improved by 160 basis points, reflecting cost discipline[6] - Adjusted SG&A expenses for the three months ended September 30, 2025, were $643 million, which is 10.0% of net revenues, compared to $499 million or 8.9% in 2024[53] - Adjusted operating expenses for the three months ended September 30, 2025, were $3,830 million, which is 59.4% of net revenues, compared to $3,399 million or 60.6% in 2024[53] - The adjusted operating expenses margin for the three months ended September 30, 2025, was 59.0%, down from 60.6% in 2024[53] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $45,608 million, an increase from $44,567 million at the end of 2024[28] - The company reported a total current liability of $5,737 million as of September 30, 2025, down from $6,258 million at the end of 2024[28] - The company’s long-term debt, less current portion, was $22,482 million as of September 30, 2025, slightly down from $22,541 million at the end of 2024[28] - Cash and cash equivalents decreased to $175 million as of September 30, 2025, from $414 million at the end of 2024[28] Market Conditions and Future Outlook - The company expects total revenue for 2025 to be approximately $25.275 billion, at the low end of prior guidance due to declining recycled commodity prices[11] - The average price received for single stream recycled commodities was about $68 per ton, down from about $101 per ton in the prior year[16] - The leverage ratio is expected to improve, targeting a range of 2.5 to 3.0 times by mid-2026[12] - The company anticipates continued growth and optimization of its business, including the integration of the Stericycle acquisition, which is expected to yield synergies[19] Operational Highlights - The company completed four growth projects in Q3 2025, including new renewable natural gas facilities and recycling projects[12] - The landfill depletable tons increased to 33.7 million for the three months ended September 30, 2025, from 32.9 million in 2024[42] - The total collection and disposal revenue for the nine months ended September 30, 2025, was $19,124 million, a decrease of $3,600 million from $15,524 million in 2024[32] - The company achieved a 3.8% internal revenue growth in collection and disposal for the three months ended September 30, 2025[36] - The recycling processing and sales segment experienced a revenue decline of 14.0% for the three months ended September 30, 2025[36]

Core Insights - WM reported strong financial results for Q3 2025, with a revenue increase of 14.9% year-over-year, reaching $6,443 million compared to $5,609 million in Q3 2024 [2][4] - The company achieved double-digit growth in cash flow from operations, driven by disciplined growth, cost optimization, and sustainability investments [1][10] - Adjusted operating EBITDA for the WM Legacy Business grew by 8.7%, with a record operating EBITDA margin of 37.5% in the Collection and Disposal segment [3][4] Financial Performance - Total revenue for Q3 2025 was $6,443 million, up from $5,609 million in Q3 2024, reflecting a 14.9% increase [2][4] - Net income for Q3 2025 was $603 million, compared to $760 million in Q3 2024, resulting in diluted EPS of $1.49 [2][4] - Operating EBITDA for the total company was $1,718 million, with an operating EBITDA margin of 26.7% [2][3] Segment Performance - The WM Legacy Business generated $5,815 million in revenue, a 3.7% increase from the previous year, driven by a 6.0% core price increase and a 3.8% yield [4][10] - The Recycling Processing and Sales segment experienced a revenue decline of $60 million due to lower market prices for recycled commodities, with a nearly 35% drop in blended average prices [4][10] - WM Healthcare Solutions generated $628 million in revenue, slightly below expectations, as the company prioritized customer lifetime value [4][10] Cost Management - Total operating expenses for Q3 2025 were $3,833 million, with an adjusted operating expense margin of 59.5% [5][6] - SG&A expenses for the total company were $665 million, reflecting a margin of 10.3% [6][7] - The company improved adjusted operating expenses as a percentage of revenue for the WM Legacy Business by 160 basis points, attributed to better driver retention and strategic exits from low-margin contracts [5][10] Cash Flow and Investments - The company generated $4.35 billion in net cash from operating activities in the first nine months of 2025, a 12.0% increase from the prior year [10] - Free cash flow for the first nine months was $2.11 billion, a 13.5% year-over-year increase [10] - WM continues to invest in sustainability projects, with four new facilities commencing operations during the quarter [10][11] 2025 Outlook - The company affirms its adjusted operating EBITDA guidance of $7.475 to $7.625 billion and free cash flow guidance of $2.8 to $2.9 billion [10][11] - Total company revenue is expected to be approximately $25.275 billion, at the low end of prior guidance, primarily due to declining recycled commodity prices [10][11] - Projected adjusted operating EBITDA margin guidance has increased to between 29.6% and 30.2% [10][11]

Market Overview - U.S. markets opened with significant gains, with the Nasdaq rising by 1.47% to reach 8,532.62 and the S&P 500 increasing by 0.91% to 23,546.16, both setting new records [2] - The Dow Jones Industrial Average jumped 310 points, or 0.66%, to 47,517.13 [2] - Small caps, represented by the Russell 2000, initially rose by 0.53% before pulling back [2] Premarket Movers - Notable gainers in premarket trading included Janus Henderson (+14% on buyout rumors), Darling Ingredients (+14%), and Keurig Dr. Pepper (+9.7% following earnings) [4] - Major losers included Organon & Co (-21% due to CEO resignation amid controversy), Carter's Inc. (-9.4% after earnings), and Newmont Corp (-5.1% linked to declining gold prices) [4] Economic Context - U.S. stock futures were on the rise, buoyed by strong earnings reports and a softer-than-expected inflation report from the previous week [5] - The S&P 500 and Nasdaq Composite reached new intraday records, surpassing 6.8K and 23.2K, respectively, while the Dow Jones also exceeded 47.2K [5] - Hopes for a U.S.-China trade deal have increased, with a framework being discussed that includes issues like fentanyl, rare earth metals, and tariffs, as President Trump and President Xi are expected to meet at the APEC [6] Earnings Reports - The week is anticipated to be busy for earnings, with reports from Keurig Dr. Pepper and others, including Welltower, Cadence Design, and Waste Management, expected later in the day [7]

Earnings Reports - Keurig Dr Pepper Inc. (NASDAQ: KDP) is expected to report quarterly earnings of 54 cents per share on revenue of $4.15 billion [2] - Nucor Corp. (NYSE: NUE) is projected to post quarterly earnings of $3.70 per share on revenue of $12.57 billion [2] - Whirlpool Corp. (NYSE: WHR) is anticipated to report quarterly earnings of $1.41 per share on revenue of $3.93 billion [2] - Waste Management Inc. (NYSE: WM) is expected to report quarterly earnings of $2.02 per share on revenue of $6.50 billion [2] Stock Movements - Keurig Dr Pepper shares rose 0.3% to $27.25 in after-hours trading [2] - Nucor shares increased by 0.2% to close at $138.70 on Friday [2] - Plymouth Industrial REIT Inc. (NYSE: PLYM) shares fell 1.5% to $21.75 in after-hours trading following acquisition news [2] - Whirlpool shares gained 1% to $74.40 in after-hours trading [2] - Waste Management shares rose 0.3% to $215.20 in after-hours trading [2] Acquisition News - Plymouth Industrial REIT Inc. agreed to be acquired by Makarora Management LP and Ares Alternative Credit Funds in an all-cash transaction valued at approximately $2.1 billion [2]