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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