Waste management company Republic Services (NYSE:RSG) will be reporting results tomorrow after market close. Here’s what to look for.
Republic Services missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $4.08 billion, up 6.5% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ sales volume estimates.
Is Republic Services a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Republic Services’s revenue to grow 6.3% year on year to $4.07 billion, slowing from the 8.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.39 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Republic Services has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Republic Services’s peers in the environmental and facilities services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Tetra Tech delivered year-on-year revenue growth of 17.9%, beating analysts’ expectations by 8.6%, and Veralto reported revenues up 4.4%, in line with consensus estimates. Tetra Tech traded down 2.9% following the results while Veralto was also down 5.2%.
Read our full analysis of Tetra Tech’s results here and Veralto’s results here.
Investors in the environmental and facilities services segment have had steady hands going into earnings, with share prices flat over the last month. Republic Services is up 7.8% during the same time and is heading into earnings with an average analyst price target of $224.27 (compared to the current share price of $223.25).
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