Waste Management, Inc. (NYSE:WM) is all set to announce its second-quarter 2023 results on July 25, after the market closes.

WM has a commendable track record of beating earnings expectations, having surpassed the Consensus Estimate in three out of the four previous quarters, with an average positive surprise of 1.6%.

In terms of revenue, the Consensus Estimate for the second quarter stands at $5.21 billion, representing a 3.7% increase from the actual figure reported in the same quarter last year. The company’s consistent revenue stream and expected organic growth are believed to be the key drivers behind this growth.

The consensus estimate for earnings per share is projected at $1.53, reflecting a 6.3% rise year over year. This increase is likely attributed to the company’s strong price discipline.

Now let’s take a closer look at the expectations for different segments of Waste Management in the second quarter.

For Collection and Disposal, our estimate for Q2 2023 revenues is currently at $3.51 billion, which is a 5.9% increase from the figure reported in the second quarter of 2022. This growth can be attributed to the expected continuation of strong organic growth in this segment.

Regarding Landfill revenues, our estimate for the second quarter is $1.22 billion, indicating a 2.5% increase from the year-ago reported figure. This growth is expected due to the anticipated increase in bookings.

For Transfer and Recycling revenues, we estimate $572.2 million, which is 3.3% higher than the year-ago figure, and $417.9 million for the second quarter, representing a 10.7% decrease from the year-ago reported figure. The growth in Transfer revenue is likely due to post-collection pricing while Recycling revenue might see a slight dip.

Finally, our estimate for adjusted EBITDA for the second quarter is pegged at $1.49 billion, indicating a solid 5% growth from the figure reported in the same period last year.

As we await Waste Management’s second-quarter results, investors are eagerly anticipating the company’s performance, particularly the revenue growth in its various segments and the overall earnings trajectory. Waste Management’s consistent track record of beating estimates and its focus on price discipline are key factors that will be closely observed by investors in assessing the company’s performance and prospects in the waste management industry.

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