Feb 29 (Reuters) - Shares of Progressive Waste Solutions fell 11 percent to a two month low on Tuesday, after the company missed revenue estimates and said its U.S. northeast operations continued to be hurt by stiff competition.
The waste manager’s U.S. northeast margins fell to its lowest in two years to 23.5 percent from 29.1 percent last year. The U.S. northeast accounted for nearly a fifth of the company’s fourth-quarter revenue.
“Visibility on a concrete plan that addresses the margin erosion is sorely needed and without it will cap the stock’s valuation,” Wunderlich Securities said in a note to clients.
The company posted revenue of $457.2 million lower than analysts expectations of $462.2 million, while its profit came above the consenus estimates.
The Toronto-based company serves about 250,000 commercial and industrial customers in markets across 12 states in the United States and six Canadian provinces.
The company’s shares were trading down C$2.05 at C$19.50 on Tuesday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Anil D‘Silva)