Republic Services (NYSE:RSG) reported its second-quarter results after the market closed on Thursday. The recycling and waste management company delivered an in-line quarter as its results met its own expectations.

However, the company sees better days ahead, as it raised its full-year guidance. Also receiving a boost was the company's dividend, which was increased 7.1%, to $0.30 per share.

A look at the numbers
Republic Services reported revenue of $2.3 billion, which was up 3.6% over last year's second quarter. The following chart breaks down the company's revenue by its line of business.

 

Revenue

 

Y-O-Y

Segment

2Q15

2Q14

Change

Collection

 $1,755.0

 $1,691.2

4%

Transfer

 $113.9

 $107.6

6%

Landfill

 $281.1

 $272.2

3%

E&P Waste Services

 $27.0

 $9.7

178%

Other

 $134.4

 $148.5

-9%

Source: Republic Services Press Release. Chart by author. Note: In millions of dollars.

As that chart notes, the company's three-core business lines all delivered single-digit year-over-year revenue growth. In fact, the only real weakness was in the company's "other" business lines, which includes the sale of recycled commodities.

Those sales were weaker than last year due to an overall weakness in commodity prices. Meanwhile, its E&P Waste Services segment delivered robust growth, thanks, in part, to the acquisition of Tervita that was completed earlier this year. 

The company's solid sales growth yielded net income of $190.3 million, or $0.54 per share, which was in line with its estimates. Earnings were higher than last year's second quarter when the company reported net income of $179.0 million, or $0.50 per share. Aside from stronger revenue, another factor driving earnings growth was lower fuel costs as a result of the slump in oil prices. That helped to offset much of the weakness from the company's commodity price-exposed recycling business.

Republic Services is doing a great job turning trash into cash, and so far this year, the company has generated adjusted free cash flow of about $410 million. It has returned nearly all of it, or $400 million, back to shareholders via share repurchases and dividends. The company has plans to return even more of its future cash flow back to investors via dividends, as it's boosting the payout by 7.1% starting with the October dividend.

A look at the outlook 
Given its solid quarter, and its expectation for continued strength the rest of the year, Republic Services is boosting its full-year guidance. The company now expects full-year earnings per share to be in a range of $2.02-$2.05, which is up from its previous earnings of $1.98-$2.04 per share. Further, the company also boosted its guidance for free cash flow, as it now expects to generate $720 million-$745 million, which is up from $710 million-$740 million.

Investor takeaway
Republic Services delivered a solid quarter, growing both revenue and earnings in line with its expectations. The company expects its solid performance to continue, which is why it's not only raising its full-year guidance, but also its dividend.

Matt DiLallo has no position in any stocks mentioned. 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.