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Republic Services (RSG) to report Q4 Earnings: What to Expect?

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Republic Services, Inc. (RSG - Free Report) is scheduled to release its fourth-quarter 2023 results on Feb 27, after market close.

RSG has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 8.9%.

Republic Services, Inc. Price and EPS Surprise

 

Republic Services, Inc. Price and EPS Surprise

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

Q4 Expectations

The Zacks Consensus Estimate for the company’s fourth-quarter top line is pegged at $3.72 billion, indicating 5.5% growth from the year-ago actual. This is likely to have been driven by an improved segmental performance.

Our estimate for the Collection segment’s revenues is pegged at $2.53 billion, indicating a 5.3% rise from the fourth-quarter 2022 reported figure. This is likely to have been driven by benefits from the acquisitions of solid waste companies.

Our estimate for Landfill revenues is pegged at $415.1 million, implying an 8.7% increase from the year-ago reported figure. An expected increase in special waste solid waste, construction and demolition volumes is likely to have driven the rise. Our estimate for Transfer revenues is pegged at $191 million, suggesting 6.9% growth from the year-ago reported figure.

We expect environmental solutions revenues of $413 million, indicating a 1.1% decrease from the year-ago reported figure.

Our estimate for the fourth-quarter adjusted EBITDA is pegged at $1.03 billion, implying 7.7% growth from the year-ago reported figure. The EBITDA margin is expected to be 27.4%, suggesting a rise of 30 basis points from the year-ago reported margin.

The consensus estimate for earnings per share is pegged at $1.28, up 13.27% from the year-ago actual. The increase can be attributed to proper pricing to earn appropriate returns.

What Our Model Says

Our proven model does not conclusively predict 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. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

RSG has an Earnings ESP of 0.00% and a Zacks Rank of 2.

Stocks That Warrant a Look

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

Integral Ad Science Holding (IAS - Free Report) currently has an Earnings ESP of +90.91% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the top line is pegged at $131.59 million, indicating a 12.1% rise from the year-ago actual. IAS will release earnings for fourth-quarter 2023 on Feb 27.

Marathon Digital (MARA - Free Report) currently has an Earnings ESP of +100.00% and a Zacks Rank #3. The company will release earnings for the fourth-quarter 2023 on Feb 28.

The Zacks Consensus Estimate for MARA’s revenues is pegged at $138.04 million, suggesting year-over-year growth of more than 100%. The Zacks Consensus Estimate for earnings is pegged at 5 cents per share, indicating above 100% year-over-year growth.

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

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