Waste Management Slips To Loss In Q4, Sees FY14 EPS Below View - Update

(RTTNews) - Integrated waste services provider Waste Management, Inc. (WM) Tuesday reported a loss for the fourth quarter, compared to a profit last year, reflecting hefty impairment charges. Revenues, however, increased from the prior year. Adjusted earnings per share as well as revenues missed analysts' estimates. The company also issued fiscal 2014 earnings view, below analysts' estimate.

Further, the firm said its board has approved a 2.7 percent increase in the planned quarterly dividend, and authorized purchase of up to $600 million of the company's common stock.

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

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.

Adjusted for items, earnings were $0.56 per share, while the company posted $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.

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

"We built strong momentum during the first three quarters of 2013, and that momentum continued into the fourth quarter, with our traditional solid waste business growing both adjusted income from operations margin and adjusted operating EBITDA margins by 150 basis points," said David Steiner, president and chief executive officer.

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 for the year.

Separately, Waste Management announced that its board 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 2014.

WM closed Friday's regular trading at $43.67 on the NYSE. In the pre-market activity on Tuesday, the shares are down 2.91 percent.