Waste Connections Shares Slide After Guidance Affirmed

By Robb M. Stewart

Waste Connections Inc. shares were under pressure Thursday after the North American garbage collection and disposal company affirmed its full-year guidance after logging an almost 10% rise in first-quarter earnings thanks to price-led organic growth and recent acquisitions.

In morning trading, the shares were 1.9% lower, at US$137.58, on the New York Stock Exchange, and down 4.4%, at 182.81 Canadian dollars (US$134.06), in Toronto.

Waste Connections after the market closed Wednesday reported quarterly net income of US$197.8 million, or 77 U.S. cents a share, up from US$180.3 million, or 69 U.S. cents, a year earlier.

Adjusted earnings came in at 89 U.S. cents a share, topping the 87 U.S. cents mean forecast of analysts polled by FactSet.

Revenue for the quarter rose to US$1.9 billion, modestly ahead of the US$1.89 billion expected.

The company said it is on track to achieve forecasts provided in February, including revenue for the year of about US$8.05 billion and net income of roughly US$961 million, and reiterated it sees upside potential to its outlook from any additional acquisitions, increases in recycled commodities and renewable fuels values, or a reduction of inflationary pressures.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

April 27, 2023 10:41 ET (14:41 GMT)

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