Waste Connections Results Top Estimates; Outlook Weak

(RTTNews) - Waste Connections, Inc. (WCN) said Monday after the markets closed that its fourth quarter profit rose 37% from last year, as revenue increased 8%.

The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue.

However, the company' forecast full year 2014 revenue below analysts' current consensus estimate.

"Continuing strength in solid waste disposal volumes, E&P waste and roll off activity enabled us to exceed the upper end of our fourth quarter outlook and provide a good entry point into 2014," said Ronald Mittelstaedt, Chairman and Chief Executive Officer of Waste Connections. Waste Connections shares are currently losing 0.28% in after hours trading after closing the day's regular trading session at $42.15, up 25 cents.

For the fourth quarter ended December 31, 2013, the The Woodlands, Texas-based solid waste management company reported net income of $49.4 million or $0.40 per share, compared to $36.0 million or $0.29 per share for the year-ago quarter.

Excluding items, adjusted net income for the fourth quarter was $54.5 million or $0.44 per share, compared to $45.9 million or $0.37 per share, in the prior year quarter.

On average, 9 analysts polled by Thomson Reuters expected the company to earn $0.43 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Revenue for the fourth quarter rose 8% to $485.9 million from $448.8 million in the same quarter last year. Eleven analysts had a consensus revenue estimate of $479.59 million for the fourth quarter.

Looking forward, the company forecasts full year 2014 revenue of $2.02 billion to $2.04 billion. Analysts currently expect the company to post revenue of $2.07 billion for the full year 2014.

Another solid waste management company Republic Services, Inc. (RSG) last week reported forecast beating fourth quarter results, but gave downbeat earnings forecast for the current year.