Waste Management Posts Loss In Q4, Sees FY14 Earnings Below View; Plans Buyback

(RTTNews) - Integrated waste services provider Waste Management, Inc. (WM) reported Monday a net loss in its fourth quarter, compared to profit last year, on hefty charges. Adjusted earnings per share and revenues missed analysts' estimates. The company also issued fiscal 2014 earnings view, below analysts' estimate.

For the fourth quarter, the net loss attributable to the company was $605 million or $1.29 per share, compared to last year's profit of $224 million or $0.48 per share.

The latest quarter results included a negative $1.85 per share impact from impairments primarily related to goodwill in the Company's waste-to-energy business, as well as certain post-collection assets and investments.

Adjusting for items, net income would have been $263 million or $0.56 per share, compared to $267 million or $0.57 per share a year ago.

On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.61 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue in the fourth quarter increased 1.9 percent to $3.50 billion from $3.43 billion in 2012. Analysts estimated revenues of $3.58 billion for the quarter.

Looking ahead for fiscal 2014, the company projects adjusted earnings per share to be between $2.30 and $2.35, while analysts expect $2.41 per share.

Separately, Waste Management announced that its Board of Directors has approved a 2.7 percent increase in the planned quarterly dividend rate, to $0.375 per share from $0.365. On an annual basis, the per share dividend increases to $1.50 from $1.46.

The company said its Board intends to declare the first quarter 2014 dividend in February, at which time it will announce the record and payment dates for this dividend. It is expected that the first increased dividend will be paid in March of 2014.

The company also announced that its Board has authorized the purchase of up to $600 million of its common stock.