$WM has received authorization from its BoD to repurchase $1.25Bil of its common stock. This new authorization is effective immediately. During 2017, the company expects to return approx $1.5Bil to its shareholders through dividends and share repurchases.
$WM said that it is tough to predict commodity prices and company has built in 3 cents of improvement in the guidance for recycling business. The company expects to have 4 cents impact in fuel costs for the year. $WM also added that it plans to execute the $500MM share buyback in the back half of the year.
$WM reported an increase in 1Q17 earnings. Net income was $298MM or $0.67 per share versus $258MM or $0.58 per share for 1Q16. Adjusted net income was $291MM or $0.66 per share in 1Q17. Revenues rose 8.3% to $3.44Bil from last year, driven by positive yield and volume in the collection and disposal business, and higher recycling commodity prices.
$WM's BoD has elected Bradbury H. Anderson to the position of board chairman, effective February 27, 2017. The board also appointed Devina A. Rankin to the position of SVP, CFO and Treasurer, also effective February 27, 2017. She will report to Jim Fish, President and CEO.
$WM's total operating costs in 4Q16 increased $120MM YoY. The increase was largely related to increased volumes and costs related to acquired operations, which were reflected in higher labor and subcontractor costs. There was a 130 basis point impact from higher commodity-based costs related to recycling rebates in fuel expense.
$WM reported that 4Q16 revenue growth was benefited from higher recycling commodity prices, which drove $51MM increase in recycling revenue. Acquisitions, net of divestitures also increased revenues by $45MM. Fuel surcharges and currency fluctuations did not significantly impact 4Q16 revenues.
Waste management services provider $WM reported 23% rise in its 4Q16 earnings, mainly due to rise in revenues. The company reported net income of $335MM, or $0.75 per share, compared to net income of $273MM, or $0.62 per share during 4Q15. Revenues during the quarter rose 6.5% YoY to $3.46 Bil.
$WM said its BoD approved a 3.7% increase in the planned quarterly dividend rate, from $0.41 to $0.425 per share. On an annual basis, the per share dividend increases from $1.64 to $1.70. The company also received authorization from its BoD to repurchase $750MM of its common stock.
