The 10-second takeaway
For the quarter ended March 31 (Q1), Republic Services met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share dropped.
Gross margins dropped, operating margins grew, net margins dropped.
Republic Services logged revenue of $2.00 billion. The nine analysts polled by S&P Capital IQ expected to see 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 $0.46. The nine earnings estimates compiled by S&P Capital IQ averaged $0.41 per share. Non-GAAP EPS of $0.46 for Q1 were 21% higher than the prior-year quarter's $0.38 per share. GAAP EPS of $0.34 for Q1 were 11% lower than the prior-year quarter's $0.38 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 38.8%, 50 basis points worse than the prior-year quarter. Operating margin was 17.0%, 70 basis points better than the prior-year quarter. Net margin was 6.2%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.09 billion. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $8.30 billion. The average EPS estimate is $1.90.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 504 members out of 529 rating the stock outperform, and 25 members rating it underperform. Among 192 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 186 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 $35.57.
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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 recommends 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.