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Republic Services, Inc. (RSG - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
RSG’s earnings per share (EPS), excluding 2 cents from non-recurring items, of $1.41 beat the Zacks Consensus Estimate by 10.2% and increased 24.8% year over year. Revenues of $3.8 billion surpassed the consensus mark by 2.9% and increased 8.6% year over year.
The company’s shares have gained 43.1% in the trailing 12 months, outperforming the 30.8% rally of the industry it belongs to.
Republic Services, Inc. Price, Consensus and EPS Surprise
Revenues from Collection totaled $2.6 billion, up 9.4% year over year, beating our estimate of $2.5 billion.
Revenues (net) in the Transfer and Landfill segments were $188.2 million and $419.6 million, rising 5.3% and 9.8% year over year, respectively. The Transfer segment’s revenues missed our estimate of $191 million, whereas Landfill revenues surpassed our estimate of $415.1 million. The uptick in Landfill revenues was primarily driven by special waste revenues.
The Other segment’s revenues of $175.4 million increased 23% year over year and beat our estimate of $154 million. Environmental solutions’ revenues (net) of $413.4 million decreased 1% year over year but beat our estimate of $412.7 million.
Operating Results
Adjusted EBITDA for the quarter was $1.1 billion, marking an 18.7% increase from the year-ago quarter and exceeding our estimate of $1 billion. The adjusted EBITDA margin of 29.9% rose from the prior-year quarter by 260 basis points, beating our estimate of 27.4%.
Balance Sheet and Cash Flow
Republic Services exited fourth-quarter 2023 with cash and cash equivalents of $140 million compared with $157.5 million at the end of third-quarter 2023. Long-term debt (net of current maturities) was $11.9 billion compared with $11 billion at the end of the third-quarter 2023.
RSG generated $898.5 million in cash from operating activities in the reported quarter. The adjusted free cash flow was $157.7 million. Capital expenditure in the reported quarter was $547.9 million.
2024 Guidance
For 2024, the company expects revenues of $16.1-$16.2 billion, whereas the Zacks Consensus Estimate is pegged at $15.8 billion. Adjusted EPS is anticipated to be $5.94-$6. The mid-point of the company’s guided range ($5.97) is higher than the Zacks Consensus Estimate of $5.96.
Adjusted EBITDA is anticipated to be $4.82-$4.87 billion. The adjusted free cash flow is likely to be $2.1-$2.15 billion.
TransUnion (TRU - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
TRU’s EPS of 70 cents per share (adjusting 67 cents from non-recurring items) surpassed the consensus mark by 14.8% in the fourth quarter and was flat on a year-over-year basis. Total revenues of $954.3 million surpassed the consensus mark by 3% and increased 5.8% year over year on a reported basis. Revenues rose 5% on a constant-currency basis, mainly driven by strength in the international markets.
Envestnet, Inc. (ENV - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate.
ENV’s EPS, excluding $4 from non-recurring items, was 65 cents in the fourth quarter, surpassing the consensus estimate by 22.6%. The bottom line increased 44.4% from the year-ago quarter. Total revenues of $317.6 million beat the consensus estimate by 1.7%. The top line improved 8.5% on a year-over-year basis.
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Republic Services (RSG) Q4 Earnings & Revenues Beat Estimates
Republic Services, Inc. (RSG - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
RSG’s earnings per share (EPS), excluding 2 cents from non-recurring items, of $1.41 beat the Zacks Consensus Estimate by 10.2% and increased 24.8% year over year. Revenues of $3.8 billion surpassed the consensus mark by 2.9% and increased 8.6% year over year.
The company’s shares have gained 43.1% in the trailing 12 months, outperforming the 30.8% rally of the industry it belongs to.
Republic Services, Inc. Price, Consensus and EPS Surprise
Republic Services, Inc. price-consensus-eps-surprise-chart | Republic Services, Inc. Quote
Segmental Revenues
Revenues from Collection totaled $2.6 billion, up 9.4% year over year, beating our estimate of $2.5 billion.
Revenues (net) in the Transfer and Landfill segments were $188.2 million and $419.6 million, rising 5.3% and 9.8% year over year, respectively. The Transfer segment’s revenues missed our estimate of $191 million, whereas Landfill revenues surpassed our estimate of $415.1 million. The uptick in Landfill revenues was primarily driven by special waste revenues.
The Other segment’s revenues of $175.4 million increased 23% year over year and beat our estimate of $154 million. Environmental solutions’ revenues (net) of $413.4 million decreased 1% year over year but beat our estimate of $412.7 million.
Operating Results
Adjusted EBITDA for the quarter was $1.1 billion, marking an 18.7% increase from the year-ago quarter and exceeding our estimate of $1 billion. The adjusted EBITDA margin of 29.9% rose from the prior-year quarter by 260 basis points, beating our estimate of 27.4%.
Balance Sheet and Cash Flow
Republic Services exited fourth-quarter 2023 with cash and cash equivalents of $140 million compared with $157.5 million at the end of third-quarter 2023. Long-term debt (net of current maturities) was $11.9 billion compared with $11 billion at the end of the third-quarter 2023.
RSG generated $898.5 million in cash from operating activities in the reported quarter. The adjusted free cash flow was $157.7 million. Capital expenditure in the reported quarter was $547.9 million.
2024 Guidance
For 2024, the company expects revenues of $16.1-$16.2 billion, whereas the Zacks Consensus Estimate is pegged at $15.8 billion. Adjusted EPS is anticipated to be $5.94-$6. The mid-point of the company’s guided range ($5.97) is higher than the Zacks Consensus Estimate of $5.96.
Adjusted EBITDA is anticipated to be $4.82-$4.87 billion. The adjusted free cash flow is likely to be $2.1-$2.15 billion.
Currently, Republic Services carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
TransUnion (TRU - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
TRU’s EPS of 70 cents per share (adjusting 67 cents from non-recurring items) surpassed the consensus mark by 14.8% in the fourth quarter and was flat on a year-over-year basis. Total revenues of $954.3 million surpassed the consensus mark by 3% and increased 5.8% year over year on a reported basis. Revenues rose 5% on a constant-currency basis, mainly driven by strength in the international markets.
Envestnet, Inc. (ENV - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate.
ENV’s EPS, excluding $4 from non-recurring items, was 65 cents in the fourth quarter, surpassing the consensus estimate by 22.6%. The bottom line increased 44.4% from the year-ago quarter. Total revenues of $317.6 million beat the consensus estimate by 1.7%. The top line improved 8.5% on a year-over-year basis.