Waste Management, Inc. (NYSE:WM) stock rose 4.99% (As on February 13, 11:28:02 AM UTC-4, Source: Google Finance) after the company beats the Wall Street’s expectations for the fourth quarter of FY 23. Collection and disposal yield was 4.9%, and collection and disposal volumes increased 1.1%, or 1.9% on a workday adjusted basis. Operating expenses as a percentage of revenue improved 240 basis points to 60.3% driven by efficiencies in the collection and disposal business. SG&A expenses were 9.8% of revenue compared to 9.9%, or 9.8% on an adjusted basis, in the fourth quarter of 2022. Total Company adjusted operating EBITDA grew 14.7% to $1.56 billion, and margin expanded 240 basis points to 29.9% on an adjusted basis. Operating EBITDA in the Collection and Disposal business grew $250 million, or $205 million on an adjusted basis, to $1.77 billion. Operating EBITDA margin expanded 360 basis points, or 260 basis points on an adjusted basis, to 37.0%. The Company returned $593 million to shareholders, including $312 million of share repurchases and $281 million of cash dividends.

WM in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.74, beating the analysts’ estimates for the adjusted earnings per share of $1.53, according to  Zacks Investment Research. The company had reported the adjusted revenue growth of 5.7 percent to $5.22 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $5.19 billion.

For fiscal 2024, Total Company revenue is expected to grow between 6% and 7%. The Company’s disciplined pricing programs are expected to result in core price of between 6% and 6.5% and collection and disposal yield approaching 5%. Collection and disposal volume growth is expected to approach 1%. Total Company adjusted operating EBITDA is expected to be in the range of $6.275 to $6.425 billion, an increase of about $450 million at the midpoint of the range, which includes about $115 million of adjusted operating EBITDA growth from sustainability growth investments. Adjusted operating EBITDA margin is expected to be in the range of 29.0% and 29.4%, expanding 30 basis points at the midpoint of the range.

In addition, WM expects to spend in the range of $2.2 to $2.3 billion on capital expenditures to support its normal business activities. WM intends to invest between $850 and $900 million for capital expenditures on high-return growth projects in its recycling and renewable energy businesses. Free cash flow before these targeted sustainability and automation focused capital investments is projected to be between $2.75 and $2.95 billion.