The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Republic Services missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Republic Services reported revenue of $2.05 billion. The eight analysts polled by S&P Capital IQ looked for sales of $2.10 billion on the same basis. GAAP reported sales were 3.3% lower than the prior-year quarter's $2.12 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 $0.47. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.49 per share. GAAP EPS of $0.42 for Q3 were 19% lower than the prior-year quarter's $0.52 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 37.4%, 310 basis points worse than the prior-year quarter. Operating margin was 15.5%, 410 basis points worse than the prior-year quarter. Net margin was 7.5%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.03 billion. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $8.20 billion. The average EPS estimate is $1.90.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 515 members out of 541 rating the stock outperform, and 26 members rating it underperform. Among 187 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 181 give Republic Services a green thumbs-up, and six 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 $33.72.
Can your retirement portfolio provide you with enough income to last? You'll need more than Republic Services. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Republic Services to My Watchlist.