Waste Management Profit Rises 24% Despite Revenue Decline

Friday, 27 Apr 2007 | 11:05 AM ET

Trash hauler Waste Managementsaid its quarterly profit rose on lower costs and improved pricing, beating the company's and analysts' expectations and sending shares higher .

Waste Management reported net income of $222 million, or 43 cents a share, for the first quarter, up 24% from net income of $186 million, or 34 cents a share, in the same quarter a year ago.

Revenue dipped to $3.19 billion, compared to $3.23 billion in the year-ago period.

Analysts surveyed by Thomson Financial predicted earnings of 36 cents a share on revenue of $3.16 billion.

"Pricing and margins drove the out-performance," wrote JP Morgan analyst Scott Levine in a note to clients.

Landfill pricing improved year over year, and collection pricing looked strong as well, with commercial collection pricing reaching a recent high, Levine said.

Operating profit for the first-quarter was 43 cents a share, which excluded a one cent restructuring charge.

Thanks to the strong first-quarter performance, the company said it expects full-year earnings per share between $2.03 and $2.07 a share. That compares to the latest analysts expectations of $1.97 per share.


Contact U.S. News


    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • "The economy and the stock market are not always linked," says Henry Blodget, Business Insider editor-in-chief & CEO, stating three reasons why he thinks the market is set up for bad returns.

  • Will Power, Robert W. Baird & Co. senior research analyst, discusses expectations the Q1 quarterly earnings of Netflix and their market opportunity in the U.S. and abroad. Henry Blodget, Business Insider, provides insight.

  • Chinese e-commerce giant Alibaba is expected to file for an IPO as soon as this week and could raise up to $15 billion when the company eventually goes public, reports CNBC's Josh Lipton.