WM Gears Up to Post Q1 Earnings: Here's What You Should Know

Core Insights - WM is set to release its first-quarter 2025 results on April 28, with a history of earnings surprises, having beaten the Zacks Consensus Estimate in two of the last four quarters, with an average beat of 3.9% [1] Revenue Expectations - The Zacks Consensus Estimate for total revenues is $6.1 billion, indicating an 18.4% increase from the same quarter last year [1] - Collection revenues are expected to reach $4.7 billion, reflecting a 15.3% year-over-year growth [2] - Landfill revenues are projected at $1.4 billion, suggesting a 19.4% increase compared to the previous year [2] - The Transfer segment is estimated to generate $681.4 million, indicating a 21.7% rise year-over-year [2] - Recycling Processing and Sales revenues are anticipated to be $526.3 million, representing a 20.7% increase from the prior year [3] - WM Renewable Energy is expected to contribute $89 million, marking a 27.2% year-over-year growth [3] - WM Healthcare Solutions revenues are estimated at $107.6 million [3] EBITDA and Operational Efficiency - Adjusted EBITDA is projected to be $1.8 billion, suggesting a 21% growth from the same quarter last year [4] - Factors contributing to improved operational efficiency include cost optimization, shedding of low-margin residential business, and lower fuel costs in Collection and Disposal [4] Earnings Per Share (EPS) Expectations - The consensus estimate for earnings per share is $1.68, indicating a 5.1% decline from the year-ago quarter [5] - Strong margins driven by robust top-line growth and a disciplined cost strategy are expected to enhance the bottom line [5] Earnings Prediction Model - The model predicts an earnings beat for WM, supported by a positive Earnings ESP of +0.83% and a Zacks Rank of 3 (Hold) [6]