Waste Management shares drop almost 4% after quarterly EPS misses and higher operating costs

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Waste management slides 3.77% today

Highlights

Waste Management reported third-quarter 2026 revenue of $6.85 billion, up 6.3%, with adjusted EBITDA rising 5.8%.
Adjusted earnings per share missed expectations at $2.15 versus $2.18 forecast, as higher fuel and risk management costs pressured results.
Shares fell 3.77%, with the stock trading between $217.32 and $231.98 over the next five days as technical indicators signal continued positive momentum but short-term overbought risk.

Earnings miss and margin pressure override revenue gains

Waste Management, Inc. reported third-quarter 2026 revenue of approximately $6.85 billion, representing a 6.3% year-over-year increase, and adjusted operating EBITDA rose by 5.8%. The company missed market expectations on adjusted earnings per share, posting $2.15 versus an expected $2.18. Shareholder returns reached $957 million for the quarter through share repurchases and dividends, and operations faced higher fuel and risk management costs, with Healthcare Solutions revenue supported by the Stericycle integration and cost controls. The 2026 revenue outlook remains in line with previous forecasts, with free cash flow guided to the high end, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees WM's drop as a direct response to the earnings miss and overbought short-term conditions. He notes that technical patterns remain broadly bullish but warns of heightened downside risk if $225.06 fails. Persistent volatility and weak guidance on operating costs undermine investor confidence. Kharitonov remains skeptical of sustained upside given the divergence across momentum indicators. "Buyers should be cautious — until overbought readings reset and cost pressures ease, further downside cannot be ruled out."

Viktoras Karapetjanc, expert at Traders Union, highlights robust revenue growth and strong shareholder returns despite the EPS miss. He believes the bullish structure remains intact with WM trading above key moving averages. The integration of Stericycle and solid guidance for free cash flow provide tailwinds. Karapetjanc sees further growth as likely if resistance at $230.3 is cleared. "Given ongoing sector momentum and positive outlook, I expect buyers to regain control and push higher in the coming sessions."

Sholanke Dele, market strategist, notes that recent downside stems from both disappointing earnings and broader sector selling. He is wary of elevated volatility and recognizes that high fuel and risk management costs have weighed heavily on sentiment. Dele warns that profit taking may persist if WM breaks below immediate support. "Traders should watch for renewed selling pressure — price gaps and volatility create more risk than reward this week."

Technical strength persists amid overbought signals and volatility

WM remains above its 20-, 50-, and 200-day moving averages ($219.3, $217.54, and $225.06), reflecting a broadly intact bullish structure. Immediate support is at $225.06 with resistance at $230.3, backed by the Ichimoku Kijun line at $221.12 as another support level. Momentum indicators such as MACD, ADX, and CCI signal buying strength, and the RSI at 68.62 points to continued upward strength. Buyer dominance is evident from the Bull/Bear Power (BBP) at 11.24, but this also suggests an overbought condition. Divergence persists as the Stochastic RSI gives a strong sell signal, and daily action shows the stock down by $8.88 with a notable downside gap and marked intraday volatility of 2.44%.

Earlier, analysts noted that Waste Management maintained a generally bullish technical structure despite pockets of short-term weakness. The latest earnings-driven pullback adds volatility but leaves the broader trend stable, with key levels at $225.06 and $230.3 likely to define direction in the near term.

Source of Data: WM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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