April 28 (Reuters) - Waste Management reported
first-quarter revenue below Wall Street estimates on Monday,
while posting higher expenses in the quarter related to the
integration of its new medical waste destruction businesses.
Shares of the company edged down more than 1% in
after-market trading.
The Houston, Texas-based company reported total revenue of
$6.01 billion, for the quarter ended March 31. Analysts on
average had expected $6.12 billion, according to data compiled
by LSEG.
However, the company posted a quarterly adjusted profit of
$1.67 per share, above analysts' average expectations of $1.62
per share.
WM, which collects and transfers trash to company landfills
and recycles it into clean, renewable energy, has been
benefiting from the use of automation, which has cut labor costs
and boosted efficiency.
The company said its selling, general and administrative
expenses in the quarter grew to $687 million, from $491 million
last year. This was due to the integration of its new medical
waste destruction businesses, referred to as WM Healthcare
Solutions, in its first full quarter as part of Waste
Management.
Last week, peer Republic Services ( RSG ) also missed
first-quarter revenue estimates, as lower volumes and bad
weather more than offset the impact of higher pricing and the
company's cost-cutting initiatives.
Alongside municipal waste departments, WM and Republic
Services ( RSG ) are two major companies that lead garbage collection
across significant regions of the United States.
Waste Management CEO Jim Fish said the company was on pace
to achieve its 2025 outlook.