Waste Management misses Q1 revenue estimates, shares fall

April 28 (Reuters) - Waste Management WM.N reported first-quarter revenue below Wall Street estimates on Monday, while posting higher expenses in the quarter related to the integration of its new medical waste destruction businesses.

Shares of the company edged down more than 1% in after-market trading.

The Houston, Texas-based company reported total revenue of $6.01 billion, for the quarter ended March 31. Analysts on average had expected $6.12 billion, according to data compiled by LSEG.

However, the company posted a quarterly adjusted profit of $1.67 per share, above analysts' average expectations of $1.62 per share.

WM, which collects and transfers trash to company landfills and recycles it into clean, renewable energy, has been benefiting from the use of automation, which has cut labor costs and boosted efficiency.

The company said its selling, general and administrative expenses in the quarter grew to $687 million, from $491 million last year. This was due to the integration of its new medical waste destruction businesses, referred to as WM Healthcare Solutions, in its first full quarter as part of Waste Management.

Last week, peer Republic Services RSG.N also missed first-quarter revenue estimates, as lower volumes and bad weather more than offset the impact of higher pricing and the company's cost-cutting initiatives.

Alongside municipal waste departments, WM and Republic Services are two major companies that lead garbage collection across significant regions of the United States.

Waste Management CEO Jim Fish said the company was on pace to achieve its 2025 outlook.