Waste Connections Second Quarter Earnings Sneak Peek

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Waste Connections, Inc. (NYSE:WCN) will unveil its latest earnings on Monday, July 23, 2012. Waste Connections is an integrated solid waste services company that provides solid waste collection, transfer, disposal and recycling services in mostly secondary markets in the western and southern United States.

Waste Connections, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 36 cents per share, a decline of 7.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 39 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 37 cents during the last month. Analysts are projecting profit to rise by 0.7% compared to last year’s $1.46.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of 32 cents per share against a mean estimate of net income of 31 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by one cent.

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A Look Back: In the first quarter, profit fell 14.3% to $31.3 million (27 cents a share) from $36.5 million (32 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 13.6% to $376.4 million from $331.5 million.

Stock Price Performance: Between April 20, 2012 and July 17, 2012, the stock price fell $2.05 (-6.2%), from $33.09 to $31.04. The stock price saw one of its best stretches over the last year between August 18, 2011 and August 29, 2011, when shares rose for eight straight days, increasing 14.1% (+$4.37) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine straight days, dropping 7.1% (-$2.40) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 5.1% in revenue from the year-earlier quarter to $409.9 million.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 15.4% over the last four quarters.

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 46.1% in the second quarter of the last fiscal year, 13% in the third quarter of the last fiscal year and 5% in the fourth quarter of the last fiscal year before declining in the first quarter.

Analyst Ratings: With five analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.86 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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