Why Is Waste Management (WM) Down 6.4% Since Last Earnings Report?

It has been about a month since the last earnings report for Waste Management (WM). Shares have lost about 6.4% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Waste Management due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Waste Management, Inc. before we dive into how investors and analysts have reacted as of late.WM Beats Q1 Earnings EstimatesWM reported first-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues fell short.The company posted adjusted earnings of $1.81 per share, which beat the Zacks Consensus Estimate of $1.75 by 3.4%. The bottom line improved from the year-ago quarter’s adjusted figure of $1.67.Revenues of $6.23 billion missed the Zacks Consensus Estimate of $6.29 billion by 1.1%. However, the top line increased 3.5% year over year.WM’s Q1 HighlightsWaste Management delivered solid profitability in the quarter, backed by disciplined pricing, cost optimization and contributions from sustainability-driven growth initiatives.Adjusted operating EBITDA rose 5.9% year over year, while the margin expanded 70 basis points, reflecting strong execution across the business.The Collection and Disposal segment remained a key growth driver, benefiting from favorable price-to-cost spreads and operational efficiencies. Meanwhile, Recycling and Renewable Energy businesses gained from higher volumes and automation-led improvements.Segmental PerformanceRevenue growth was primarily driven by core pricing gains of 6.3% and solid yield in collection and disposal operations. However, overall volumes declined 1.5% due to harsh winter weather, strategic shedding of lower-margin residential business and difficult year-over-year comparisons related to prior wildfire cleanup activity.The Healthcare Solutions business delivered strong EBITDA growth during the quarter, supported by effective cost management and synergy realization.Financial PositionWM generated robust cash flows during the quarter. The operating cash flow totaled $1.5 billion, reflecting a 24% year-over-year increase. The free cash flow came in at $920 million, significantly higher than $475 million in the prior-year quarter.The company also maintained a strong capital allocation strategy, returning approximately $729 million to shareholders through dividends and share repurchases during the quarter.OutlookManagement expressed confidence in the company’s momentum and reaffirmed its 2026 outlook. Continued investments in recycling, renewable energy, healthcare solutions and automation are expected to support growth and margin expansion.ConclusionWM delivered a solid earnings beat in the first quarter of 2026, reflecting strong operational execution and margin expansion. While revenues slightly missed expectations, the company’s pricing strength, cost discipline and growing sustainability businesses position it well for the remainder of the year.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.VGM ScoresCurrently, Waste Management has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Waste Management has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks