Waste Management Earnings: On Track to Achieve 2023 Guidance

Wide-moat-rated Waste Management posted first-quarter results in line with our expectations as the company maintained strong price discipline, made progress on cost structure optimization efforts, and continued to invest in long-term sustainability objectives. Additionally, management expects to achieve full-year 2023 guidance provided during the company's fourth-quarter 2022 earnings call. To reiterate, management expects top-line growth of 4%-5.5% and adjusted EBITDA margin expansion of 60 basis points at the midpoint of guidance. We maintain our $145 per share fair value estimate as our outlook is unchanged. We remain encouraged by the firm’s pricing power, development of sustainability projects, and its initiatives to drive operational efficiencies.