Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of trash hauler Republic Services
So what: The stock has rallied in recent months on hopes for solid profit growth, but today's big miss -- EPS fell to $0.38 versus the consensus of $0.42 -- is forcing Mr. Market to sober up a bit. Weak volume and higher costs continued put pressure on gross margins, giving investors plenty of tailwinds to be concerned about.
Now what: Management now sees full-year EPS of $1.86-$1.90, down from its prior view of $1.98-$2.02. "We are updating our full year guidance to reflect higher costs and current business conditions," said CEO Donald Slager. Of course, for long-term investors looking for a solid way to make some income, today's pullback in Republic Services shares -- its dividend now yields a juicy 3.2% -- might be worth pouncing on.
Interested in more info on Republic Services? Add it to your watchlist.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Republic Services. Try any of our Foolish newsletter services free for 30 days.