Financial News

Republic Services (RSG) Q3 Earnings Report Preview: What To Look For

RSG Cover Image

Waste management company Republic Services (NYSE:RSG) will be reporting earnings tomorrow after the bell. Here’s what to expect.

Republic Services met analysts’ revenue expectations last quarter, reporting revenues of $4.05 billion, up 8.6% year on year. It was a mixed quarter for the company, with optimistic earnings guidance for the full year but a miss of analysts’ volume estimates.

Is Republic Services a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Republic Services’s revenue to grow 7.7% year on year to $4.12 billion, improving from the 6.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.61 per share.

Republic Services Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Republic Services has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.4% on average.

Looking at Republic Services’s peers in the environmental and facilities services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Veralto delivered year-on-year revenue growth of 4.5%, meeting analysts’ expectations, and Rollins reported revenues up 9%, in line with consensus estimates. Veralto traded down 4.6% following the results while Rollins was also down 6.6%.

Read our full analysis of Veralto’s results here and Rollins’s results here.

Investors in the environmental and facilities services segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Republic Services’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $212.87 (compared to the current share price of $200.35).

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