Waste Management Misses Where it Counts

Waste Management (NYSE: WM  ) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Waste Management beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
Waste Management recorded revenue of $3.43 billion. The eight analysts polled by S&P Capital IQ expected revenue of $3.39 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.57. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.60 per share. GAAP EPS of $0.48 for Q4 were 17% lower than the prior-year quarter's $0.58 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.2%, 180 basis points worse than the prior-year quarter. Operating margin was 15.4%, 170 basis points worse than the prior-year quarter. Net margin was 6.5%, 130 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.34 billion. On the bottom line, the average EPS estimate is $0.42.

Next year's average estimate for revenue is $13.94 billion. The average EPS estimate is $2.30.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,642 members out of 2,700 rating the stock outperform, and 58 members rating it underperform. Among 693 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 683 give Waste Management a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Waste Management is hold, with an average price target of $34.63.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Waste Management. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

• Add Waste Management to My Watchlist.