Republic Services Misses Where it Counts
Republic Services (NYS: RSG) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Republic Services beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Republic Services recorded revenue of $2.11 billion. The nine analysts polled by S&P Capital IQ expected revenue of $2.09 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 $0.43. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.49 per share. Non-GAAP EPS of $0.43 for Q2 were 27% lower than the prior-year quarter's $0.59 per share. GAAP EPS of $0.15 for Q2 were 63% lower than the prior-year quarter's $0.40 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 33.2%, 660 basis points worse than the prior-year quarter. Operating margin was 11.2%, 760 basis points worse than the prior-year quarter. Net margin was 2.7%, 450 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.12 billion. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $8.32 billion. The average EPS estimate is $1.88.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 491 members out of 517 rating the stock outperform, and 26 members rating it underperform. Among 182 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 174 give Republic Services a green thumbs-up, and eight 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 $37.63.
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The article Republic Services Misses Where it Counts 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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