Net income was $381 million, or $0.89 per share, compared to
$499 million, or $1.15 per share, in the prior-year period. Adjusted net income
was $470 million, or $1.11 per share. Analysts had forecast EPS of $1.08.
Total company internal revenue growth from volume, including
the recycling business, was 4%. Collection and disposal business internal
revenue growth from volume was 4.4%. Internal revenue growth from yield for the
collection and disposal business was 2.7% versus 2.3% in the year-ago quarter. Core
price was 5.4% compared to 5.3% last year.
During the quarter, the company saw
a 4% revenue growth in its total collection business, helped by increases
across all its divisions. The landfill business saw a 11% growth in revenue
while the transfer business saw an 8% increase. The recycling business posted a
13% drop in revenue.
Despite an updated expectation for a full-year recycling headwind of $0.01-0.02 per share, the company is reaffirming its full-year 2019 guidance for adjusted EPS of $4.28-4.38. Adjusted operating EBITDA is expected to be $4.40 billion to $4.45 billion, and free cash flow is expected to be $2.025 billion to $2.075 billion.
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