Analyst Note| Brian Bernard, CFA, CPA |
Waste Management enjoyed a strong first-quarter performance, giving management the confidence to boost full-year financial guidance. Revenue increased 10% year over year to $4.1 billion, driven by over 2% internal revenue growth and 8% growth from the Advanced Disposal Services acquisition, which was completed on Oct. 30, 2020. Total average yield of 4.9% (including 3.4% core price) was partially offset by an almost 3% decrease in volume. Favorable pricing, cost controls, and better-than-expected ADS synergies resulted in a 100-basis-point increase in adjusted EBITDA margin to 28.2%.