Republic Services Increases Sales but Misses Estimates on Earnings
Republic Services (NYS: RSG) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Republic Services beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Republic Services chalked up revenue of $2.03 billion. The nine analysts polled by S&P Capital IQ hoped for revenue of $2.00 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.37. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.35 for Q4 were 31% lower than the prior-year quarter's $0.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.7%, 370 basis points worse than the prior-year quarter. Operating margin was 14.8%, 350 basis points worse than the prior-year quarter. Net margin was 6.3%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.99 billion. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $8.24 billion. The average EPS estimate is $1.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 510 members out of 535 rating the stock outperform, and 25 members rating it underperform. Among 203 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 give Republic Services a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Republic Services is outperform, with an average price target of $33.00.
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The article Republic Services Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Republic Services. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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