Waste Connections (WCN) Q1 Earnings Report Preview: What To Look For

Waste management company Waste Connections (NYSE:WCN) will be reporting earnings tomorrow after the bell. Here’s what to expect.

Waste Connections beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $2.26 billion, up 11% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ EPS estimates.

Is Waste Connections a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Waste Connections’s revenue to grow 7% year on year to $2.22 billion, slowing from the 9.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.08 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Waste Connections has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.7% on average.

With Waste Connections being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for environmental and facilities services stocks. However, the whole sector has faced a sell-off over the last month with stocks in Waste Connections’s peer group down 11.2% on average. Waste Connections is up 7.9% during the same time and is heading into earnings with an average analyst price target of $203.67 (compared to the current share price of $194.57).

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