Waste Management lifts annual revenue view on higher prices for recyclable goods

Waste Management

28/10/2024 22:20

Oct 28 (Reuters) - Waste Management  WM.N  raised its
annual revenue forecast on Monday following upbeat third-quarter
results, driven by higher market prices for its recyclable
commodities and increased landfill volumes.
    Shares of the company rose by 2% after the bell.   
    The company now sees its revenue growth for 2024 at 6%,
surpassing the high end of its previous projection of 5.75%.    
    Its total revenue for the quarter ended September 30 rose
about 7.9% to $5.61 billion and was driven by a core price
increase of 6.5%, a key performance metric that reflects changes
in pricing.
    WM, which collects and transfers trash to company landfills
and recycles it into clean, renewable energy, was able to
maintain high prices due to the essential nature of its waste
management services.
    The Houston, Texas-based company posted a quarterly adjusted
profit of $1.96 per share, ahead of analysts' average
expectation of $1.89 per share, according to data compiled by
LSEG.    
    The company has benefited from the use of automation, which
has cut labor costs and boosted efficiency.
    "Our investments in technology, our fleet, and our asset
network, combined with our disciplined pricing programs, are
expanding the spread between price growth and our cost to
serve," CEO Jim Fish said.
    Waste Management and Republic Services  RSG.N  are two major
companies that lead garbage collection across significant
regions of the United States, alongside municipal waste
departments.  

 (Reporting by Pratyush Thakur and Aatreyee Dasgupta in
Bengaluru; Editing by Mohammed Safi Shamsi)
 ((pratyush.thakur@thomsonreuters.com;))