Analyst Note| Brian Bernard, CFA, CPA |
Wide-moat Waste Management's second-quarter results exceeded our expectations. Revenue increased about 26% year over year to approximately $4.5 billion. While Waste Management faced an easy prior-year sales comparison due to the pandemic (second-quarter 2020 revenue was down 10% year over year), we were impressed by the firm's pricing gains during the quarter. Indeed, core price increased 6.2% compared with 3.4% last quarter and 1.3% during the year-ago quarter. Volume increased nearly 10% compared with a 10% decline last year, and the Advanced Disposal acquisition added another 9% to Waste Management's top-line growth. Management now expects full-year revenue to increase 15.5%-16% year over year compared with previous guidance of 12.5% to 13%.