Earnings Alerts

Republic Services (RSG) Earnings: 1Q Adjusted EPS Surpasses Estimates with Strong EBITDA Growth

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  • Republic Services reported an adjusted EPS of $1.58, surpassing estimates of $1.53.
  • The company’s revenue was slightly below expectations at $4.01 billion, compared to the estimated $4.05 billion.
  • Adjusted EBITDA margin improved, reaching 31.6%, higher than the anticipated 30.6%.
  • The company posted an adjusted EBITDA of $1.27 billion, exceeding the estimate of $1.24 billion.
  • Adjusted free cash flow significantly outperformed estimates, coming in at $727 million against an expected $464.8 million.
  • The company attributed its strong performance to strategic pricing and effective cost management, which offset slower cyclical volumes and challenging winter weather conditions.
  • Investments in differentiating capabilities have contributed to the business’s resilience and financial strength.
  • Investor sentiment showed 14 buy recommendations, 7 hold, and 1 sell.

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Republic Services on Smartkarma

Analyst coverage of Republic Services on Smartkarma by Baptista Research has highlighted the company’s strong financial performance, with impressive revenue growth and adjusted EBITDA expansion. In one report titled “Republic Services: The Secret Behind Its Pricing Power That’s Beating Inflation!” the company achieved 7% annual revenue growth and a 12% increase in adjusted EBITDA, resulting in a significant expansion of its adjusted EBITDA margin. Adjusted earnings per share reached $6.46, with a remarkable generation of $2.18 billion in adjusted free cash flow.

Furthermore, in another report titled “Republic Services Group: How Will The Accelerated Adoption of EV Technology Benefit Their Business? – Major Drivers,” Republic Services demonstrated solid performance in both financial and operational aspects. The company reported a 7% increase in revenue, a 14% growth in adjusted EBITDA, and a significant expansion in the adjusted EBITDA margin. Adjusted earnings per share were reported at $1.81, with an adjusted free cash flow totaling $1.74 billion on a year-to-date basis, showcasing the company’s positive momentum and potential for growth.


A look at Republic Services Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience3
Momentum5
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Republic Services, Inc., a leading provider of non-hazardous waste management services in the United States, is positioned for a positive long-term outlook based on its Smartkarma Smart Scores. With a strong emphasis on growth and momentum, scoring 4 and 5 respectively, the company demonstrates robust potential for expansion and market performance. Additionally, Republic’s resilience score of 3 reflects its ability to navigate challenging environments effectively, contributing to its overall stability. While the value and dividend scores are moderate at 2, the company’s focus on growth and momentum indicates a promising future outlook.

Operating as a key player in solid waste collection for various sectors, including commercial, industrial, municipal, and residential clients, Republic Services leverages its extensive network of transfer stations, landfills, and recycling facilities to efficiently manage waste disposal. The combination of its comprehensive service offerings and the favorable Smart Scores underscores Republic’s strategic positioning for sustained growth and success in the waste management sector in the coming years.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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