Waste Management sees FY18 adjusted EPS $3.97-$4.05, consensus $3.68
Core price is expected to be 4.0% or greater for 2018. Internal revenue growth from yield on the collection and disposal business is expected to be 2.0% or greater. Internal revenue growth from volume is expected to be between 2.0% and 2.2%. With continued commodity pricing pressure and expected cost increases from efforts to reduce contamination, earnings from the Company's recycling operations are expected to decline from the record-high levels it saw in 2017. The Company currently expects earnings from its recycling business to decline between 8c-10c per diluted share in 2018 when compared with the prior year, with much of the decline expected in the first half of 2018. Adjusted operating EBITDA is expected to be $4.2 to $4.25 billion for the full year. Free cash flow for 2018 is projected to be between $1.95 and $2.05 billion. Capital expenditures are expected to be in the range of $1.6 to $1.7 billion. The Board of Directors has indicated its intention to increase the dividend by $0.16, or 9.4%, to $1.86 per share on an annual basis, for an approximate annual cost of $810 million. The Board must separately approve and declare each dividend. The Board of Directors has authorized management to repurchase up to $1.25 billion of the Company's common stock. The Company's effective tax rate is expected to be approximately 26%. The Company plans to utilize a portion of its cash tax savings to pay approximately $65 million in bonuses to approximately 34,000 of its employees. Adjusted earnings per diluted share for 2018 is expected to be between $3.97 and $4.05, including an anticipated $0.62 earnings per diluted share benefit from tax reform partially offset by an $0.11 earnings per diluted share impact from the previously announced retention bonus for approximately 34,000 of the Company's employees.