Waste Connections, Inc. (NYSE:WCN), a North American integrated waste services company, announced its financial outlook for the third quarter of 2024 today, projecting consistent revenue and earnings growth. The company, which operates within the refuse systems industry, anticipates revenue to be between $2.275 billion and $2.300 billion for the quarter.
The forecast, revealed during the company's earnings conference call, also estimates net income attributable to Waste Connections to be in the range of approximately $297 million to $302 million. Adjusted EBITDA is expected to be between $767 million and $776 million, representing about 33.7% of the projected revenue.
These estimates are based on the current economic environment and do not account for any potential acquisitions that may be completed during the remainder of the year or expenses related to transaction-related items. Waste Connections emphasized that the provided figures assume no change in the economic conditions or underlying trends.
The company's outlook includes a detailed reconciliation of Adjusted EBITDA, a non-GAAP financial measure that is commonly used by investors to evaluate performance and valuation in the solid waste industry.
Waste Connections defines Adjusted EBITDA as net income plus or minus income or loss attributable to noncontrolling interests, income tax provision, interest expense, depreciation and amortization, and closure and post-closure accretion expense, among other items.
The information furnished in the SEC filing is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and is not subject to the liabilities of that section. This document contains forward-looking statements that involve risks and uncertainties, and actual results could differ materially from those projected.
Waste Connections, which has undergone several name changes in the past, with former names including Progressive Waste Solutions Ltd., IESI-BFC Ltd, and BFI Canada Ltd, is headquartered in Woodbridge, Ontario, Canada. The company's common shares are traded on both the New York and Toronto Stock Exchanges.
This financial outlook is based on a press release statement and provides investors with a snapshot of Waste Connections' anticipated financial performance for the upcoming quarter.
In other recent news, Waste Connections, a North American integrated waste services company, completed an offering of C$500 million in senior notes due to mature on June 14, 2029. The proceeds from this offering are intended for general corporate purposes, potentially including the repayment of existing debt.
In the event of a change of control, note holders can require Waste Connections to purchase their notes at a price of 101% of the principal amount, plus any accrued interest. On another note, Waste Connections declared a regular quarterly cash dividend of $0.285 per common share, aligning with its strategy of delivering value to shareholders.
In terms of analyst actions, several firms have upgraded their price targets for Waste Connections. BMO Capital raised its target from $182 to $186, citing expected margin improvements and potential opportunities from increased mergers and acquisitions activity.
RBC Capital also increased its price target from $182 to $196, attributing it to the company's consistent performance and strategic capital allocation. Similarly, Oppenheimer upgraded its price target for Waste Connections to $180 from $170, following investor meetings with the company's CFO. These are the recent developments surrounding Waste Connections.
InvestingPro Insights
As Waste Connections, Inc. (NYSE:WCN) projects steady growth in its latest financial outlook, investors may find additional context in the company's recent performance and market valuation.
According to InvestingPro data, Waste Connections boasts a substantial market capitalization of $46.36 billion and has demonstrated a revenue growth of 9.06% in Q1 2024. These figures underscore the company's significant presence in the waste services industry and its ability to increase revenue in the last twelve months.
InvestingPro Tips highlight that the company has been consistent in returning value to shareholders, having raised its dividend for 8 consecutive years, showcasing a commitment to steady shareholder returns. Moreover, the company's low price volatility may appeal to investors seeking stability in their portfolio.
Still, it is important to note that the company is trading at a high earnings multiple, with a P/E ratio of 53.96, suggesting a premium valuation compared to earnings. Investors considering Waste Connections as part of their investment strategy can explore further insights, including 13 additional InvestingPro Tips, by visiting https://www.investing.com/pro/WCN. To delve deeper into these analytics, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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