It's been a sad week for Waste Management, Inc. (NYSE:WM), who've watched their investment drop 10% to US$200 in the week since the company reported its second-quarter result. Revenues of US$5.4b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$1.69, missing estimates by 6.2%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the current consensus from Waste Management's 20 analysts is for revenues of US$21.6b in 2024. This would reflect an okay 2.9% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 14% to US$7.25. In the lead-up to this report, the analysts had been modelling revenues of US$21.6b and earnings per share (EPS) of US$7.26 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$224, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Waste Management at US$259 per share, while the most bearish prices it at US$164. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Waste Management's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Waste Management's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.9% growth on an annualised basis. This is compared to a historical growth rate of 7.8% over the past five years. Compare this to the 154 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.6% per year. So it's pretty clear that, while Waste Management's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Waste Management analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Waste Management .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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