Waste Connections Inc. (TSX:WCN)(NYSE:WCN) is a Vaughan-based solid waste services company that operates in Canada and the United States. Waste Connections stock was up 0.49% in early afternoon trading on February 27. Shares have climbed 2.8% in 2018 thus far.
Waste Connections released its 2017 fourth quarter and full-year results on February 14. In the fourth quarter revenue climbed to $1.15 billion which exceeded the company’s previous guidance, and it reported 4.3% solid waste price and volume growth. Net income in Q4 was $315.1 million or $1.19 per share.
For the full-year Waste Connections posted revenue of $4.63 billion and posted 4.4% solid waste price and volume growth. This compared to $3.37 billion in revenue in 2016. Net income climbed to $576.8 million compared to $246.5 million in the prior year. Waste Connections was a big beneficiary of the U.S. Tax Cuts and Jobs Act which was enacted by the Trump administration in late 2017. The company reported a $209.4 million benefit to the income tax provision.
Waste Connections also announced a quarterly cash dividend of $0.17 per share representing a 0.7% dividend yield. For its 2018 outlook Waste Connections projected revenue of $4.82 billion and net income of approximately $570 million. It also expects adjusted EBITDA of $1.55 billion or 32.1% of revenue.
Waste Connections stock has jumped 19.8% year over year. It continues to be an attractive growth stock especially in light of U.S. tax reform which should continue to be a boon going forward with the corporate tax rate slashed to 21%.
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