WM Adds Waste Transport Firm - Analyst Blog
February 28 2012 - 10:49AM
Zacks
Waste Management Inc.’s (WM) subsidiary Waste
Management of West Seneca has acquired Reliable Environmental
Transport (“RET”), one of the most respected full-service
hazardous/non-hazardous waste transportation firms in the Tri-State
area. The acquisition will provide Waste Management a leading edge
in servicing customer needs.
Bridgeport, West Virginia based Reliable Environmental Transport
caters to key industries such as Gas & Oil, Utility Companies,
Pulp and Paper, Waste Treatment Plans, Steel Manufacturing,
Railroad Companies, Convenience Stores and Environmental
Engineering & Architectural Firms. It services and holds waste
transportation permits in various states of the North East. These
states include, but are not limited to West Virginia, Ohio,
Pennsylvania, Maryland, New York, and Virginia.
The president of RET, Jonathan Marks, will now be director of
gas and hazardous waste services for West Management’s Upstate New
York, Western Pennsylvania and West Virginia
market.
Waste Management offers single-source environmental management
services to oil and natural gas producers that include
transportation, storage, recycling, treatment and disposal
processes. The acquisition is a strategic fit for the company.
Waste Management’s adjusted EPS in fiscal 2011 was $2.14
compared with $2.09 in the previous year, surpassing the Zacks
Consensus Estimate of $2.11 and at the low end of the company’s
guided range of $2.14–$2.18. Revenues increased 7% to $13.4
billion, ahead of the Zacks Consensus Estimate of $13.3
billion.
Waste Management expects 2012 adjusted EPS to lie between $2.22
and $2.30. The Zacks Consensus Estimate stands at $2.27. Internal
revenue growth from yield on the collection and disposal business
is expected to be in the range of 1.0% to 1.5%. Yield in the second
half is expected to improve from the first half. Internal revenue
growth from volume is expected to be flat to slightly positive.
Waste Management’s ability to cut costs will help in maintaining
profits despite weak volumes. Lower trending recycling prices,
lower volumes, commodity headwinds and continued margin
deterioration nonetheless remain causes of concern. Backed by its
strong cash flow, the company has increased its dividend for eight
consecutive years.
The acquisition of Oakleaf Global Holdings in 2011 will provide
North American customers with unprecedented access to waste and
recycling solutions by pairing the largest network of directly
owned hauling, recycling, diversion and disposal assets with the
largest managed third-party network.
Waste Management is the largest provider of comprehensive waste
management services in North America. The company provides
collection, transfer, recycling and resource recovery, as well as
disposal services to nearly 20 million residential, commercial,
industrial and municipal customers. It competes
with Republic Services, Inc. (RSG)
and Casella Waste Systems Inc. (CWST).
Waste Management currently maintains a Zacks #3 Rank (Hold) on its
stock for the short term.
CASELLA WASTE (CWST): Free Stock Analysis Report
REPUBLIC SVCS (RSG): Free Stock Analysis Report
WASTE MGMT-NEW (WM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Casella Waste Systems (NASDAQ:CWST)
Historical Stock Chart
From Jun 2024 to Jul 2024
Casella Waste Systems (NASDAQ:CWST)
Historical Stock Chart
From Jul 2023 to Jul 2024