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Republic Services Earnings Surpass Estimates in Q4, Revenues Miss

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Republic Services, Inc. (RSG - Free Report) reported mixed fourth-quarter 2024 results. Earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.

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RSG’s earnings per share (EPS) (excluding 5 cents from non-recurring items) of $1.58 outpaced the Zacks Consensus Estimate by 15.3% and grew 12.1% from the year-ago quarter. Revenues of $4 billion missed the consensus mark by a slight margin but increased 5.6% year over year.

The RSG stock has gained 12.6% in the past six months, outperforming the 5.3% rally of the industry it belongs to and 11.7% growth of the Zacks S&P 500 Composite.

Republic Services, Inc. Price, Consensus and EPS Surprise

 

Republic Services’ Segmental Revenues

Revenues from Collection totaled $2.7 billion, up 3.5% from the year-ago quarter, missing our projection of $2.8 billion.

Revenues (net) in the Transfer and Landfill segments were $203 million and $443 million, increasing 8% and 5.5% on a year-over-year basis, respectively. The Transfer segment’s revenues missed our projection of $204.3 million, while the Landfill segment’s revenues met our estimate.

The Other segment’s revenues of $190 million rose 8% from the year-ago quarter’s actual and missed our expectation of $199.8 million. Environmental solutions’ revenues (net) of $482 million grew 16.7% year over year and surpassed our projection of $458.4 million.

Operating Results of RSG

Adjusted EBITDA for the quarter was $1.3 billion, increasing 9.4% from the year-ago quarter, beating our estimate of $1.2 billion. The adjusted EBITDA margin was 31%, up 110 basis points from the year-ago quarter, surpassing our estimate of 26.8%.

Balance Sheet & Cash Flow of RSG

Republic Services exited the fourth quarter of 2024 with cash and cash equivalents of $74 million compared with $83.4 million at the end of the third quarter of 2024. The long-term debt (net of current maturities) was $11.9 billion compared with $12 billion at the end of the preceding quarter.

RSG generated $1 billion in cash from operating activities in the fourth quarter of 2024. The adjusted free cash flow was $444 million. Capital expenditure was $497.6 million.

Republic Services carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Republic Services’ 2025 Guidance

For 2025, RSG expects revenues of $16.85-$16.95 billion. The mid-point ($16.9 billion) of the guided range is lower than the Zacks Consensus Estimate for revenues of $16.92 billion.

The company expects the adjusted EPS to be $6.82-$6.90. The guided range is higher than the Zacks Consensus Estimate for earnings of $6.77 per share. The adjusted EBITDA view is $5.28-$5.33 million.

Earnings Snapshot

Broadridge Financial Solutions, Inc. (BR - Free Report) reported impressive second-quarter fiscal 2025 results.

BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.

Gartner, Inc. (IT - Free Report) posted better-than-expected fourth-quarter 2024 results.

IT’s adjusted earnings per share of $5.6 beat the Zacks Consensus Estimate by 69.3% and increased 79.3% from the year-ago quarter. Revenues of $1.7 billion surpassed the consensus estimate by 1.8% and improved 8.2% year over year.


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