Waste Management Earnings: We Expect Continued Profitability Improvement in 2024

Wide-moat-rated Waste Management reported mixed first-quarter results, as reported revenue growth came in slightly below the FactSet consensus estimate, but adjusted EPS handily exceeded the consensus estimate. Additionally, management slightly reduced sales guidance for fiscal 2024 because of certain headwinds unrelated to the core business and increased full-year guidance with respect to profitability. As a result, we expect to modestly increase our fair value estimate, as we believe improved profitability offsets slower near-term sales growth.