Research Reveals the Probability of a Soft Second Quarter for Waste Haulers
New York City, NY— Standard & Poor’s
environmental services equity analyst forecasts soft second quarter earnings
and has reiterated the equity STARS rankings on four waste companies.
A leading provider of independent research, indices and ratings, Standard
& Poor’s made this announcement through Standard & Poor’s
MarketScope, its real-time market intelligence service.
“We expect a soft economy and competitive pricing
to continue to have an impact on second quarter revenues for waste companies,”
says Stewart Scharf, Environmental Services Equity Analyst, Standard &
Poor’s Equity Research Services. “We expect these companies
to focus on cost-cutting measures in an effort to improve operating earnings.
Waste Management expects its recently announced staff cuts to translate
into $50 million in annual savings. We are reiterating our three-STARS
“Hold” opinions on Waste Management at $24.91 per share, Allied
Waste Industries at $10.76 per share, and Waste Connections at $35.12
per share. We advise a four-STARS “Accumulate” ranking on
the shares of Republic Services, which has superior operating margins,”
Standard & Poor’s Stock Appreciation Ranking
System (STARS), which was first introduced on December 31, 1986, reflects
the opinions of Standard & Poor’s equity analysts on the price
appreciation potential of 1,200 U.S. stocks for the next 6-12 month period.
Rankings range from five-STARS (strong buy) to one-STARS (sell).