Money Manager Interviews
Money Manager sees enormous potential for cash flow generation in the future for Waste Management
archive.twst.com
and from the wsj online
Waste Management, Houston, should report a 12% rise in third-quarter
earnings to 37 cents a share from 33 cents a year ago, according to Thomson
Financial/First Call.
Analysts expressed confidence in Waste Management's earnings because
their expectations are tied mostly to the company's turnaround initiatives
rather than volume growth. Those initiatives, cost-cutting and targeted price
increases are unaffected by the slowing economy.
"We are confident the company is on track with its turnaround initiatives," said
J.P. Morgan's Tepper in a research note, "and we expect to see evidence of
this in improved margins over the next several quarters."
Cherie Rice, a spokeswoman at Waste Management, confirmed that "nothing
in the economy should stop" the company's strategy, which is " moving
forward."
Devine of Deutsche Banc said she's comfortable with her below-consensus
estimate of 36 cents a share, on $3 billion in revenue and $862 million in
earnings, before interest, taxes, depreciation and amortization, or EBITDA.
She has an adjusted free cash flow estimate of $178 million.
The analyst is looking for Waste Management's internal growth to decline 1%,
which assumes a price gain of 2%, volume drop of 2% and a 1% decrease in
commodities.
Waste Management is scheduled to report earnings Nov. 7. |
