Waste Management Q3 Profit Down, But Sees 2014 Adj. EPS Above View - Quick Facts

(RTTNews) - Waste Management Inc.'s (WM) net income attributable to the company for the third-quarter 2014 was $270 million or $0.58 per share, down from $291 million or $0.62 per share in the third quarter of 2013.

Results in the third quarter of 2014 included approximately $66 million of after-tax net charges primarily related to the restructuring of several corporate functions and legal reserves.

Excluding these impacts, net income would have been $336 million or $0.72 per share, in the third quarter of 2014, compared to adjusted earnings per share of $0.65 last year.

Revenues for the third quarter dropped to $3.60 billion from $3.62 billion for the same 2013 period.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.68 per share and revenues of $3.66 billion for the third-quarter. Analysts' estimates typically exclude special items.

The company said it has seen three successive strong quarters in 2014, and it expects that strength to continue into the fourth quarter. It is confident that it can meet the analysts' fourth quarter consensus of $0.60 of adjusted earnings per share.

That would lead to full year 2014 adjusted earnings per share of $2.41, $0.06 above the high end of its previous range. Analysts expect annual earnings of $2.36 per share. Cash flow has also been strong through the first three quarters, and it expects that it will also exceed the $1.5 billion high end of its free cash flow guidance.

The company said in July that it would meet or exceed its full-year 2014 adjusted earnings per share guidance of between $2.30 and $2.35.

The strength of its business in the first three quarters and the reorganization of its corporate functions sets us up to continue to grow its core business in 2015, the company said.