- Waste Management ( NYSE: WM ) shares fell ~3% on Wednesday even as the environmental services company reported better-than-expected third quarter results .
- The Texas-based firm generated adjusted EPS of $1.56 on revenue of $5.08B that grew 8.8% Y/Y. Organic revenue growth and operating efficiencies translated into an 11% increase in adjusted operating EBITDA.
- However, operating EBITDA in the company's recycling line of business decreased by $36M compared to the third quarter of 2021 primarily driven by a 32% decline in recycled commodity prices and persistent inflationary cost pressures on operating costs.
- Adj operating EBITDA margin of 28.6% also fell short of analysts estimates of 28.7%.
- Free cash flow narrowed from $773M in the year-ago quarter to $432M, primarily due to the planned increase in sustainability growth investments and accelerated capital spending to support the business.
- Shares were down 2.48% to $160.92 as of 1PM ET
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Waste Management stock dips after Q3 operating margin falls short, FCF erodes