Strength in Core Pricing Propels Wide-Moat-Rated Waste Connections to Strong Third-Quarter Results

Waste Connections posted solid third-quarter results, driven by strong pricing tailwinds. Revenue growth of 18% and adjusted EPS of $1.10 (up 24% year over year) modestly exceeded our estimates for the quarter. Management remained optimistic heading into the fourth quarter and modestly raised its full-year 2022 revenue guidance by 1% while maintaining its adjusted free cash flow target of $1.16 billion. We maintain our $98 fair value estimate for New York Stock Exchange-listed shares. We lowered our fair value estimate for Toronto Stock Exchange-listed shares by 2% to CAD 132 due to foreign exchange.