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.
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 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.
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.
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.
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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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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.