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Market Overview

Waste Connections's Earnings: A Preview

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On Wednesday, February 17, Waste Connections (NYSE:WCN) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Waste Connections reporting earnings of $0.63 per share on revenue of $1.35 billion. Waste Connections EPS in the same period a year ago totaled $0.69. Sales were $1.36 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 8.7% decrease for the company. Sales would have fallen 0.88% from the same quarter last year. Waste Connections's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.66 0.55 0.63 0.62
EPS Actual 0.72 0.60 0.65 0.69
Revenue Estimate 1.38 B 1.30 B 1.33 B 1.34 B
Revenue Actual 1.39 B 1.31 B 1.35 B 1.36 B

Stock Performance

Over the last 52-week period, shares are down 3.13%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Waste Connections is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings