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CIBC lowered its price target for the company from $250 to $225. This move brings the firm's outlook in line with the average target across other Wall Street analysts. Even with the lower target, the firm still expects the stock to rise from its current level of about $208.
Source: CIBC
Jim Fish has notified the board of his plan to retire as CEO and resign from the board effective January 4, 2027, after more than 25 years with the company. He will stay on in an advisory role through mid-February to help with the transition. John J. Morris, Jr., who has served as the company's President since May 2025 and previously held the Chief Operating Officer role for several years, has been appointed to succeed him.
While a CEO change is a major event, this appears to be an orderly succession. Morris is a company veteran who has already been serving as President, suggesting the company's current strategy, which focuses on raising prices and investing in automated recycling and renewable energy, is likely to continue without a major shift in direction. For long-term owners, the stability of this handoff is more important than the change itself. Although the filing was marked as materially important, we have graded it as notable because it is a planned, months-long transition to an internal successor rather than a sudden departure.
Source: 8-K filing
The board declared a quarterly cash dividend of $0.945 per share. This payment is part of the company's long-term plan to return cash to its owners, which it has done consistently for years. To receive the payment, you must own the stock by September 11. For a business like this, which owns a massive network of landfills that are almost impossible for rivals to replicate, steady dividends are a core part of the appeal. It generates a lot of cash from its trash collection and disposal contracts, and this payout shows that the steady flow of cash remains intact.
Source: Business Wire
Wholesale prices, which track what businesses pay for goods and services before they reach consumers, were flat in July. This suggests that the cost of things like fuel and equipment parts is stabilizing after a long period of rapid increases.
For a business like this, which operates a massive fleet of trucks and heavy machinery, lower inflation on its own costs is a major win. The company has been successfully raising the prices it charges customers to stay ahead of inflation. If its own costs stop rising while those price hikes stay in place, it can keep more profit from every trash pickup.
Source: Market Watch
Waste Management reported a strong second quarter, with profit margins reaching about 31 percent. While revenue of $6.68 billion was slightly lower than what analysts expected, the company is earning more profit on every dollar of sales. This efficiency helped generate nearly 12 percent more cash from operations than the same time last year.
The company finished four sustainability projects during the quarter, which involve turning landfill gas into renewable energy and automating recycling centers. These projects are a key part of the plan to grow profits without relying solely on picking up more trash. Management returned over $1 billion to shareholders through dividends and buybacks, showing they remain focused on sending cash back to owners while investing in these new facilities.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Management has a steady habit of clearing their own targets by a few cents. This predictability shows they have a firm grip on their costs and pricing power.
| Expectation | |
|---|---|
| EPS | $2.18 |
| Revenue | $6.81B |
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