The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Republic Services met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged, and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins shrank, and net margins improved.
Republic Services booked revenue of $2.03 billion. The eight analysts polled by S&P Capital IQ anticipated sales of $2.02 billion. GAAP sales were 0.2% higher than the prior-year quarter's $2.02 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.53. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share on the same basis. GAAP EPS of $0.51 for Q4 were 31% higher than the prior-year quarter's $0.39 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 40.4%, 100 basis points worse than the prior-year quarter. Operating margin was 18.3%, 70 basis points worse than the prior-year quarter. Net margin was 9.4%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.97 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $8.32 billion. The average EPS estimate is $2.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 513 members rating the stock outperform and 25 members rating it underperform. Among 193 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 188 give Republic Services a green thumbs-up, and five 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 $35.15.
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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of 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.