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Mar 31, 2020
Waste Management Q1 2020 Earnings Report
Announced financial results for the quarter ended March 31, 2020.
Key Takeaways
Waste Management reported Q1 2020 revenues of $3.73 billion, a slight increase from $3.70 billion in Q1 2019. Net income was $361 million, or $0.85 per diluted share, compared to $347 million, or $0.81 per diluted share in the same period last year. The company has suspended its 2020 financial guidance due to the COVID-19 pandemic.
Q1 2020 revenue reached $3.73 billion, up from $3.70 billion in the same period of 2019.
Net income for the quarter was $361 million, or $0.85 per diluted share.
Adjusted net income was $395 million, or $0.93 per diluted share.
The company has suspended its 2020 financial guidance due to the COVID-19 pandemic.
Waste Management
Waste Management
Forward Guidance
Waste Management has suspended its 2020 financial guidance due to the unprecedented impact of, and uncertainty created by, the COVID-19 pandemic.
Positive Outlook
- Leveraging technology to enable swift route optimization
- Dramatically reducing overtime hours
- Limiting hiring and optimizing the existing workforce through greatly improved retention and reduced turnover
- Reducing or eliminating certain non-essential costs and expenses like travel and entertainment and consulting costs
- Flexing capital expenditures to a level that is consistent with volume changes.
Challenges Ahead
- Anticipate a significant decrease in 2020 revenue from planned levels as a result of COVID-19, driven by volume declines in our landfill and industrial and commercial collection businesses.
- A reduction in landfill and industrial collection volumes.
- Service decreases accelerated late in the month and into the second quarter.
- An increase in container weights in the residential line of business, which increased our cost to service these customers.
- The Company had a negative revenue impact of approximately $40 million due to COVID-19.