Why Waste Management Shares Are Diving Today
Portfolio Pulse from Lekha Gupta
Waste Management, Inc. (NYSE:WM) shares are trading lower after reporting worse-than-expected Q2 financial results. Sales and adjusted EPS missed consensus estimates, despite revenue growth and margin expansion. The company reiterated its FY24 outlook and highlighted ongoing sustainability projects. WM recently agreed to acquire Stericycle, Inc. (NASDAQ:SRCL) for approximately $7.2 billion. Investors can gain exposure via VanEck Environmental Services ETF (NYSE:EVX) and IShares U.S. Utilities ETF (NYSE:IDU).
July 25, 2024 | 4:22 pm
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POSITIVE IMPACT
Stericycle, Inc. is set to be acquired by Waste Management for approximately $7.2 billion. This acquisition could impact SRCL's stock positively as it becomes part of a larger entity.
The acquisition by Waste Management is likely to be seen as a positive development for Stericycle, potentially boosting its stock as it becomes part of a larger, more stable entity.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70
NEGATIVE IMPACT
VanEck Environmental Services ETF, which includes Waste Management, may see short-term volatility due to WM's Q2 results miss. However, long-term prospects remain tied to the broader environmental services sector.
Given that WM is a significant component of EVX, the ETF may experience short-term volatility. However, the long-term outlook depends on the broader environmental services sector.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
IShares U.S. Utilities ETF, which includes Waste Management, might experience minor short-term fluctuations due to WM's Q2 results miss. The ETF's performance is more broadly tied to the utilities sector.
While WM's Q2 results miss could cause minor short-term fluctuations in IDU, the ETF's overall performance is more closely tied to the broader utilities sector.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
Waste Management shares are down 6.85% after Q2 results missed estimates. Sales of $5.402 billion and adjusted EPS of $1.82 fell short of consensus. Despite revenue growth and margin expansion, the market reacted negatively.
The market reacted negatively to WM's Q2 results missing estimates, leading to a significant drop in share price. Despite positive aspects like revenue growth and margin expansion, the misses on sales and EPS were critical.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100