Should You Bet on More Record Highs for Waste Connection Stock?

Analyzing post-earnings opportunities for Waste Connections stock

facebook twitter linkedin


Waste Connections Inc (NYSE:WCN) is an integrated solid waste services company that provides non-hazardous waste collection, transfer, and disposal services, along with resource recovery primarily through recycling and renewable fuels generation. WCN serves more than seven million residential, commercial, and industrial customers in mostly exclusive and secondary markets across 43 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery, and disposal services in several basins across the U.S., as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest.

On Wednesday, Aug. 4, Waste Connections announced its second quarter of 2021 financial results. WCN's revenue for the quarter totaled $1.534 billion, up 17.5% year-over-year. Moreover, WCN’s net income was $177.0 million, or $0.68 per share. In comparison to one year ago, Waste Connections reported a net loss of $227.1 million. This translates to the fact that WCN improved its net income by $404.1 million year-over-year.

On the earnings front, Waste Connection has outperformed earnings expectations on all four of its most recent earnings reports. For the third quarter of 2020, WCN beat analyst estimates by a margin of $0.04, reporting earnings per share (EPS) of $0.60. For the fourth quarter of 2020, Waste Connections' EPS increased to $0.72, beating expectations by a margin of $0.06. For the first quarter of 2021, WCN posted a decrease in earnings, dropping to $0.68 per share. However, the waste services company still beat estimates by a margin of $0.05. For the most recent quarterly that was released on Wednesday, Waste Connections reported an EPS of $0.81 and beat expectations by a slight margin of $0.04.

Waste Connection stock is up 22.5% in 2021, with recent support at the 60-day containing a brief pullback early last month. The trendline launched WCN to a record high of $128.50 ahead of its earnings report. While the shares have cooled since then, off 0.3% at $125.72 this afternoon, the 10-day moving average could help keep shares afloat. 

 

wcn aug 6

In fact, several analysts are speculating on more upside for WCN. Today alone, no less than  five analysts lifted their price targets. This includes a price-target hike from Stifel to $154 from $140. The 12-month consensus price target of $136.70 now sits at a $136.70 premium to current levels. 

Grab your FREE Eternal Contrarian report!


 




 
Special Offers from Schaeffer's Trading Partners