"Waste Management ( NYSE: WM) missed on both earnings and revenue in Q3, posting adjusted EPS of $1.49 against expectations of $2.08 and revenue of $6.44B versus $6.70B estimated. The stock fell 2.35% in after-hours trading, though the decline was modest given the magnitude of the misses. The real pressure comes from guidance. Management now expects full-year revenue at the low end of its prior range, citing declining recycled commodity prices and softer healthcare solutions revenue."
"The company's core Collection and Disposal business posted record-setting margins, a genuine bright spot in an otherwise uneven quarter. That strength underscores the resilience of WM's primary revenue engine. Free cash flow grew 13.5% year over year in the first nine months, reaching $821M in Q3 alone, which signals solid operational execution despite headline disappointment. Management also completed two new renewable natural gas facilities and two recycling projects, advancing its sustainability strategy."
"Recycling, however, dragged results lower. The segment faced a $60M revenue decline tied directly to lower commodity prices. That's a headwind the company can't control in the near term, and it's material enough to shift full-year expectations. The $260M revenue miss reflects two specific pressures: recycled commodity prices have declined more sharply than anticipated, and WM Healthcare Solutions revenue came in softer than expected. Neither is a sign of operational failure, but both signal that near-term visibility is limited."
Waste Management reported adjusted EPS of $1.49 versus $2.08 expected and revenue of $6.44B versus $6.70B expected, producing a roughly $260M revenue shortfall. The stock fell 2.35% in after-hours trading while management moved full-year revenue guidance to the low end of its prior range because recycled commodity prices declined and WM Healthcare Solutions revenue softened. Collection and Disposal posted record-setting margins and free cash flow grew 13.5% year over year, with $821M in Q3 alone. Recycling suffered a $60M revenue decline tied to lower commodity prices, reducing near-term revenue visibility.
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