Waste management firm WM beats profit estimates on strong prices

By Thomson Reuters Feb 12, 2024 | 5:29 PM

(Reuters) – Waste management firm WM reported fourth-quarter profit beating Wall Street estimates on Monday, supported by higher prices and sustained demand for garbage collection and disposal.

The Houston, Texas-based company posted an adjusted profit of $1.74 per share for the quarter, ahead of analysts’ expectations of $1.53 per share, according to LSEG data.

WM, which collects trash, transfers it to company landfills and recycles it into clean, renewable energy, was able to sustain high prices due to the essential nature of its waste management services.

The company also benefited from automation, which has reduced labor costs and increased efficiency.

Core prices, a metric used by the company to signify price changes, increased 7.3% in the fourth quarter.

Waste Management, along with Republic Services, is one of the two major companies—apart from municipal waste departments—that dominate garbage collection in large parts of the United States.

Its total revenue in the final quarter rose about 5.7% to $5.22 billion.

(Reporting by Pratyush Thakur, Kannaki Deka in Bengaluru; Editing by Tasim Zahid)