Waste Management Q3 Earnings Analysis: Strong Free Cash Flow Offsets EPS Miss
Waste Management (WM) reported third-quarter adjusted earnings per share of $2.15, slightly missing analyst estimates. While revenue grew 6.3% to $6.85 billion due to price increases, the company faced margin pressure from rising fuel and risk management costs. Specifically, risk management expenses rose to $135 million compared to $72 million in the prior year. Despite the earnings miss, the company's financial health remains robust regarding shareholder returns. Free cash flow for the quarter reached $985 million, a 20% increase year-over-year. For the first nine months, free cash flow totaled $3.01 billion, providing ample coverage for its dividend payouts and supporting significant share buybacks.