Dive Brief:
- Houston, TX-based Waste Management has reported its 2015 third quarter earnings. Revenues for the waste management company declined 6.7% to $3.36 billion from $3.60 billion during the 2014 third quarter. Net earnings jumped 24.1% to $335 million ($0.74 per diluted share), compared to $270 million ($0.58 per diluted share) in the 2014 third quarter.
- Despite a 15% drop in average recycling commodity prices and a 6.4% decline in volume of recyclables since the 2014 third quarter, Waste Management showed a 7% improvement in operating cost per ton for recyclables due to employee performance and efficiency.
- Waste Management CEO David Steiner said the company is confident that its "employees' focus on core business" will allow Waste Management to meet the analysts' fourth quarter consensus of $0.67 of adjusted earnings per diluted share.
Dive Insight:
In concluding the earnings call, Steiner said that three consecutive quarters of strong results is a tribute to Waste Management employees "executing our pricing, disciplined growth, and cost control strategies."
In addition to employee efficiency, Waste Management's ability to stay on top of the recycling market has given them a leg up in the industry. "Ultimately, we want to provide recycling solutions that both meet our customers' needs and generate an appropriate return for us. Recycling is the right option for the environment, and we are working to make it the right business decision for our shareholders as well," said Steiner.
Stericycle, Casella, and Waste Connections all recently reported their third quarter earnings, as well. Revenues and net profits both climbed for Waste Connections and Casella, while Stericycle showed a drop in net earnings.
