Waste Connections (WCN) posted its second quarter monetary outcomes on August 4 after market shut. The North American built-in waste providers firm reported sturdy outcomes pushed by increased strong waste pricing and volumes.
Income got here in at $1.534 billion within the quarter ended June 30, a rise of 17.5% from $1.306 billion within the prior-year quarter.
In the meantime, Q2 2021 internet earnings was $177 million (C$0.68 per share), in contrast with a internet lack of $227.1 million (-C$0.86 per share) in Q2 2020.
On an adjusted foundation, Waste Connections earned C$0.81 per share within the second quarter, up 35% from C$0.60 per share a yr in the past. Adjusted EBITDA was $484.9 million in Q2 2021 in contrast with $394.3 million in Q2 2020.
The corporate raised its outlook for the complete yr on broad-based energy. (See Waste Connections stock charts on TipRanks)
“Given the energy of our leads to the primary half of the yr and anticipated persevering with momentum and margin growth from these developments, we consider we’re on monitor to report roughly $5.975 billion of income and $1.875 billion of adjusted EBITDA in 2021, exceeding our preliminary outlook supplied in February,” stated president and CEO Worthing F. Jackman. “Extra importantly, full yr adjusted free money movement can be pacing forward of preliminary expectations and is now estimated at roughly $1 billion, or 53% of adjusted EBITDA.”
Jackman added that 2021 has the potential to be one other yr of outsized acquisition exercise. Because the begin of the yr, Waste Connections has signed or closed 14 acquisitions with complete annualized income of roughly $115 million.
On July 26, Raymond James analyst Patrick Tyler Brown maintained a Purchase score on WCN whereas elevating its worth goal to $143.00 (C$179.35). This means 12.4% upside potential.
Total, the consensus on the Road is that WCN is a Sturdy Purchase based mostly on 7 Buys. The average Waste Connections price target of C$169.32 implies 6% upside potential to present ranges.
TipRanks’ Sensible Rating
WCN scores a 9 out of 10 on the TipRanks Sensible Rating score system, indicating that the inventory returns are more likely to beat the general market.