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Republic Services (RSG) Q3 Earnings: What's in the Cards?
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Republic Services, Inc. (RSG - Free Report) is scheduled to report third-quarter 2018 earnings on Oct 25, after market close.
The top line is expected to benefit on the back of acquisitions and higher internal growth. Increased revenues and tax benefits are expected to aid the bottom line.
We observe that the stock has gained 11.3% in the past year, outperforming the 8.8% rally of the industry it belongs to.
Top Line Expectations
The Zacks Consensus Estimate for revenues is pegged at $2.56 billion, reflecting a marginal improvement from the year-ago quarter’s figure. In the last reported quarter, revenues of $2.52 billion declined year over year on a non-adjusted basis. The figure increased 3.9% on a proforma basis. This includes a positive impact of 2.1% due to internal growth and 1.8% from acquisitions.
The Zacks Consensus Estimate for revenues in the Collection segment is pegged at $1.92 billion, indicating year-over-year growth of 1.9%. In second-quarter 2018, revenues of $1.88 billion increased 1.5% on non-adjusted basis and 3.3% on a proforma basis year over year.
The Zacks Consensus Estimate for revenues in the Transfer and Disposal segment is pegged at $143 million, reflecting year-over-year rise of 5.9%. In second-quarter 2018, segment revenues of $139 million improved 6.7% on non-adjusted basis and 7.8% on proforma basis.
The consensus mark for Landfill segment revenues is pegged at $327 million, indicating year-over-year growth of 1.2%. In the last reported quarter, segment revenues of $315.3 million improved slightly on non-adjusted basis and 1.7% on a proforma basis.
Energy Services segment revenues are also expected to improve in the soon-to-be-reported quarter. Revenues are likely to be driven by an increase in drilling activity in the Permian Basin. In second-quarter 2018, segment revenues of $50.2 million surged 39.1% on non-adjusted basis and 40.2% on a proforma basis.
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 81 cents, indicating year-over-year growth of 20.9%. Lower tax rate resulting from the tax reform policy (Tax Cuts and Jobs Act) and revenue growth are likely to boost the bottom line.
In second-quarter 2018, adjusted earnings of 73 cents improved 19.7% from the year-ago quarter.
Our Model Doesn’t Suggest a Beat
Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if the companies are witnessing negative estimate revisions. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Republic Services has a Zacks Rank #3 and an Earnings ESP of -0.31%, a combination that makes surprise prediction difficult.
Other Stocks to Consider
Here are a few other stocks from the broader Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in third-quarter 2018:
WEX Inc. (WEX - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #2. The company is slated to report quarterly results on Oct 31.
FTI Consulting, Inc. (FCN - Free Report) has an Earnings ESP of +4.43% and a Zacks Rank #3. The company is slated to report quarterly numbers on Oct 25.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Republic Services (RSG) Q3 Earnings: What's in the Cards?
Republic Services, Inc. (RSG - Free Report) is scheduled to report third-quarter 2018 earnings on Oct 25, after market close.
The top line is expected to benefit on the back of acquisitions and higher internal growth. Increased revenues and tax benefits are expected to aid the bottom line.
We observe that the stock has gained 11.3% in the past year, outperforming the 8.8% rally of the industry it belongs to.
Top Line Expectations
The Zacks Consensus Estimate for revenues is pegged at $2.56 billion, reflecting a marginal improvement from the year-ago quarter’s figure. In the last reported quarter, revenues of $2.52 billion declined year over year on a non-adjusted basis. The figure increased 3.9% on a proforma basis. This includes a positive impact of 2.1% due to internal growth and 1.8% from acquisitions.
The Zacks Consensus Estimate for revenues in the Collection segment is pegged at $1.92 billion, indicating year-over-year growth of 1.9%. In second-quarter 2018, revenues of $1.88 billion increased 1.5% on non-adjusted basis and 3.3% on a proforma basis year over year.
The Zacks Consensus Estimate for revenues in the Transfer and Disposal segment is pegged at $143 million, reflecting year-over-year rise of 5.9%. In second-quarter 2018, segment revenues of $139 million improved 6.7% on non-adjusted basis and 7.8% on proforma basis.
The consensus mark for Landfill segment revenues is pegged at $327 million, indicating year-over-year growth of 1.2%. In the last reported quarter, segment revenues of $315.3 million improved slightly on non-adjusted basis and 1.7% on a proforma basis.
Energy Services segment revenues are also expected to improve in the soon-to-be-reported quarter. Revenues are likely to be driven by an increase in drilling activity in the Permian Basin. In second-quarter 2018, segment revenues of $50.2 million surged 39.1% on non-adjusted basis and 40.2% on a proforma basis.
Republic Services, Inc. Price and EPS Surprise
Republic Services, Inc. Price and EPS Surprise | Republic Services, Inc. Quote
Earnings to Improve Year Over Year
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 81 cents, indicating year-over-year growth of 20.9%. Lower tax rate resulting from the tax reform policy (Tax Cuts and Jobs Act) and revenue growth are likely to boost the bottom line.
In second-quarter 2018, adjusted earnings of 73 cents improved 19.7% from the year-ago quarter.
Our Model Doesn’t Suggest a Beat
Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if the companies are witnessing negative estimate revisions. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Republic Services has a Zacks Rank #3 and an Earnings ESP of -0.31%, a combination that makes surprise prediction difficult.
Other Stocks to Consider
Here are a few other stocks from the broader Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings in third-quarter 2018:
Clean Harbors, Inc. (CLH - Free Report) has an Earnings ESP of +7.98% and a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Oct 31. You can see the complete list of today’s Zacks #1 Rank stocks here.
WEX Inc. (WEX - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #2. The company is slated to report quarterly results on Oct 31.
FTI Consulting, Inc. (FCN - Free Report) has an Earnings ESP of +4.43% and a Zacks Rank #3. The company is slated to report quarterly numbers on Oct 25.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>