Republic Services (NYSE: RSG) reported earnings on July 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Republic Services met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins contracted, net margins improved.
Revenue details
Republic Services booked revenue of $2.06 billion. The nine analysts polled by S&P Capital IQ hoped for a top line of $2.09 billion on the same basis. GAAP reported sales were 1.2% lower than the prior-year quarter's $2.09 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.59. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.49 per share. GAAP EPS of $0.40 for Q2 were 233% higher than the prior-year quarter's $0.12 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 39.8%, 90 basis points worse than the prior-year quarter. Operating margin was 18.8%, 140 basis points worse than the prior-year quarter. Net margin was 7.2%, 500 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.13 billion. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $8.27 billion. The average EPS estimate is $1.87.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 518 members out of 544 rating the stock outperform, and 26 members rating it underperform. Among 179 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 172 give Republic Services a green thumbs-up, and seven 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 $33.67.
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