The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Republic Services beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Republic Services chalked up revenue of $2.03 billion. The nine analysts polled by S&P Capital IQ hoped for revenue of $2.00 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.37. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.35 for Q4 were 31% lower than the prior-year quarter's $0.51 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 36.7%, 370 basis points worse than the prior-year quarter. Operating margin was 14.8%, 350 basis points worse than the prior-year quarter. Net margin was 6.3%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.99 billion. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $8.24 billion. The average EPS estimate is $1.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 510 members out of 535 rating the stock outperform, and 25 members rating it underperform. Among 203 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 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 $33.00.
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