IMO The current price is quite at near max based on current PE ratio,
But looking at the net income growth rates, the current ratio may be too low and with 1 Strong Buy 4 Hold 2 Strong Sell, and consistently beating estimates for the last 3 Qs, it may be primed for further upgrades. Will be watching this. Thx.
2006 OUTLOOK
Allied Waste also announced its outlook for the full year 2006 including the following:
- Revenue growth of approximately 4% to 5%, including price growth of 2%
to 3% and volume growth of 2% to 3%; - Operating income (earnings before interest and taxes) of approximately
$900 million to $975 million;
- Depreciation and amortization of approximately $600 million, or
approximately 10% of revenue;
- Cash flow from operations of approximately $850 million to $900 million,
including the impact of the change in disbursements account, which is
reflected in financing activities;
- Capital expenditures of approximately $700 million;
- Free cash flow of approximately $150 million to $200 million. In 2006
we will present Free Cash Flow as cash flow from operations, (including
the impact of the change in disbursements account which is reflected in
financing activities) less capital expenditures, plus proceeds from
fixed asset sales. This conforms to the industry's presentation of free
cash flow.
- Dividends on preferred stock of approximately $50 million; and
- Debt repayment of approximately $100 million to $150 million.
