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Valued at a market cap of $89.9 billion, Waste Management, Inc. (WM) is a leading provider of comprehensive environmental solutions across North America and internationally. The company offers waste collection, recycling, renewable energy generation, and specialized disposal services to residential, commercial, industrial, and municipal customers. WM is expected to announce its fiscal Q2 2025 results after the market closes on Monday, Jul. 28.
Ahead of this event, analysts expect the Houston, Texas-based company to report an adjusted EPS of $1.89, up 3.9% from $1.82 in the year-ago quarter. The company has surpassed or met Wall Street's bottom-line estimates in three of the past four quarters while missing on another occasion. WM surpassed the consensus adjusted EPS estimate by 1.2% in the most recent quarter.
For fiscal 2025, analysts expect the garbage and recycling hauler to report adjusted EPS of $7.58, up 4.8% from $7.23 in fiscal 2024. Moreover, adjusted EPS is expected to grow 12.1% year-over-year to $8.50 in fiscal 2026.
Waste Management has risen over 8% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 13.4% gain and the Industrial Select Sector SPDR Fund's (XLI) 22.8% return over the same period.
Despite reporting a better-than-expected Q1 2025 adjusted EPS of $1.67 on Apr. 28, WM shares fell marginally the next day due to revenue of over $6 billion falling short of the street estimate. Investors were also likely cautious about flat workday-adjusted volumes in the core Collection and Disposal segment and a 30-basis-point volume hit from winter weather disruptions in the Eastern Tier.
Analysts' consensus rating on Waste Management stock is cautiously optimistic, with an overall "Moderate Buy" rating. Out of 23 analysts covering the stock, 12 recommend a "Strong Buy," one has a "Moderate Buy" rating, and 10 give a "Hold" rating. This configuration is more bullish than three months ago, with 10 analysts suggesting a "Strong Buy."
The average analyst price target for WM is $255.38, suggesting a potential upside of 12.5% from the current levels.
