Waste management company Republic Services (NYSE: RSG) will be reporting earnings this Thursday after market hours. Here’s what to expect.
Republic Services beat analysts’ revenue expectations last quarter, reporting revenues of $4.43 billion, up 4.6% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EBITDA estimates.
Is Republic Services a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Republic Services’s revenue to grow 4.9% year on year, improving from the 3.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Republic Services has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Republic Services’s peers in the environmental and facilities services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Waste Connections delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 1.2%, and Waste Management reported revenues up 6.3%, topping estimates by 0.5%. Waste Connections traded up 9.9% following the results.
Read our full analysis of Waste Connections’s results here and Waste Management’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the environmental and facilities services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.7% on average over the last month. Republic Services is up 9.3% during the same time and is heading into earnings with an average analyst price target of $243.58 (compared to the current share price of $232.69).
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