Why I Love Waste Management's $1.6 Billion Investment in Its Future
Waste Management (NYSE: WM) reported its fourth-quarter earnings on Feb. 2, and the results were met with mixed reactions. The company delivered revenue and net income in line with analysts' estimates, but that represented stronger growth than normal. Revenue was up 15% year over year to almost $4.7 billion, while the company's net income grew 16% to $506 million, driven by stable increases in its trash volume. But as with many other businesses, it faced margin pressure from increases in commodity prices due to inflation.
Where the company stood out, however, was in its spending forecast for the coming years. Waste Management is looking to invest heavily in recycling and renewable energy projects in 2022 and beyond, signaling management's vision for the company's future. This news was interpreted differently by various stakeholders, but long-term investors should see this as a positive indicator. Here's why.
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Source Fool.com
