Back to top

Image: Bigstock

Here's What to Expect From Republic Services' (RSG) Q2 Earnings

Read MoreHide Full Article

Republic Services, Inc. (RSG - Free Report) is scheduled to release its second-quarter 2023 results on Jul 31, after the market close.

RSG has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in the four trailing quarters. The average surprise is 10.8%.

Q2 Expectations

The Zacks Consensus Estimate for the top line is pegged at $3.7 billion, up 8.4% from the year-ago actual figure. The expected growth is likely to have been driven by improved segmental performance.

Republic Services, Inc. Price and EPS Surprise

Republic Services, Inc. Price and EPS Surprise

Republic Services, Inc. price-eps-surprise | Republic Services, Inc. Quote

The consensus estimate for earnings per share is pegged at $1.33, slightly above the year-ago actual figure. The likely increase can be attributed to proper pricing to earn appropriate returns.

Segmental Expectations

Our estimate for second-quarter 2023 revenues from Collection is pegged at $2.48 billion, up 6.3% from the second-quarter 2022 reported figure. The increase can be attributed to the likely benefit from the deployment of RISE tablets.

Our estimate for Landfill’s revenues is currently pegged at $410.3 million, 1% higher than the year-ago reported figure. The growth can be due to the expected increase in special waste revenues. Our estimate for Transfer and Environmental Solutions revenues are respectively pegged at $189 million, which is 1.5% lower than the year-ago figure, and $389.9 million, which indicates a 32.5% increase from the year-ago reported figure. Appropriate pricing is likely to have resulted in such growth.

Our estimate for adjusted EBITDA for the second quarter is $1.02 billion, indicating 1.4% growth from the year-ago figure. EBITDA margin is expected to be 28.2%, 140 basis points lower than the year-ago margin.

What Our Model Says

Our proven model predicts an earnings beat for RSG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

RSG has an Earnings ESP of +0.34% and a Zacks Rank of 3.

Other Stocks to Consider

Here are a few other stocks from the broader Business Services sector, which according to our model, also have the right combination of elements to beat on earnings this season.

Aptiv (APTV - Free Report) currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the bottom line is pegged at $1.01 per share, up more than 100% from the year-ago figure. The consensus mark for revenues is pegged at $4.7 billion, up 15.8% from the figure reported a year ago. APTV had an average negative surprise of 8.1% in the previous four quarters.

APTV has an Earnings ESP of +12.88. The company is scheduled to release its second-quarter earnings on Aug 3.

Fiserv (FI - Free Report) currently has a Zacks Rank of 2. The Zacks Consensus Estimate for the bottom line is pegged at $1.81 per share, up 16% from the year-ago reported figure. The consensus mark for revenues is pegged at $4.52 billion, up 6.8% from the prior-year reported figure. FI had an average surprise of negative 0.39% in the previous four quarters.

FI has an Earnings ESP of +0.42. The company is scheduled to declare its second-quarter results on Jul 26.

S&P Global (SPGI - Free Report) currently has a Zacks Rank of 2. The Zacks Consensus Estimate for the bottom line is pegged at $3.12 per share, up 11% from the year-ago reported figure. The consensus mark for revenues is pegged at $3.06 billion, up 2.3% from the prior-year reported figure. SPGI had an average surprise of 3.1% in the previous four quarters.

SPGI has an Earnings ESP of +1.58. The company is slated to declare its second-quarter results on Jul 27.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar

 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Republic Services, Inc. (RSG) - free report >>

Fiserv, Inc. (FI) - free report >>

S&P Global Inc. (SPGI) - free report >>

Aptiv PLC (APTV) - free report >>

Published in