Waste Connections Shares Decline 3% Despite Q3 Earnings Beat

Core Insights - Waste Connections, Inc. (WCN) reported strong third-quarter 2024 results, with earnings and revenues exceeding Zacks Consensus Estimates, although the stock declined by 2.5% post-release [1][2] Financial Performance - Adjusted earnings were $1.4 per share, surpassing the consensus estimate by 3.9% and reflecting a year-over-year increase of 15.4% [2] - Revenues reached $2.3 billion, beating the consensus estimate by 2.2% and growing 13.3% compared to the same quarter last year [2] - Adjusted EBITDA was $787.4 million, up 17.3% year-over-year, with an adjusted EBITDA margin of 33.7%, an increase of 120 basis points from the previous year [5] Segment Performance - Solid Waste Collection segment revenues grew 7.2% year-over-year to $1.6 billion [3] - Solid Waste Disposal and Transfer segment revenues increased 10.4% to $776.9 million, exceeding expectations [3] - Solid Waste Recycling segment revenues surged 65.1% to $63.3 million, beating estimates [4] - Intermodal and Other segment revenues rose 93.2% to $69.7 million, surpassing expectations [4] - E&P Waste Treatment, Recovery, and Disposal segment revenues more than doubled to $154.2 million, exceeding estimates [4] Cash Flow and Balance Sheet - Cash generated from operating activities was $558.3 million, with adjusted free cash flow at $316.3 million [7] - Capital expenditures totaled $272.1 million, and dividends paid amounted to $65.7 million [7] - The company ended the quarter with cash and cash equivalents of $78.4 million and long-term debt of $6.7 billion, unchanged from the previous quarter [6] Future Outlook - Waste Connections raised its 2024 revenue guidance to $8.9 billion, up from $8.85 billion, while the Zacks Consensus Estimate remains at $8.85 billion [8] - Expected adjusted EBITDA for 2024 is $2.91 billion, with a margin of 32.7% [8]