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Republic Services (RSG) Earnings Surpass Estimates in Q1
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Republic Services, Inc. (RSG - Free Report) reported mixed first-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate but revenues missing the same.
RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.5 beat the Zacks Consensus Estimate by 5.8% and increased 16.9% from the year-ago quarter. Revenues of $3.9 billion missed the consensus mark by a slight margin but increased 7.8% year over year.
The RSG stock has gained 32.2% over the past year, outperforming the 22.4% rally of the industry it belongs to and 25.2% growth of the Zacks S&P 500 Composite.
Revenues from Collection totaled $2.7 billion, up 8.3% from the year-ago quarter, beating our estimate of $2.6 billion.
Revenues (net) in the Transfer and Landfill segments were $182.8 million and $404.6 million, rising 5.2% and 3% year over year, respectively. The Transfer and Landfill segments’ revenues missed our estimate of $197 million and $432.5 million, respectively.
The Other segment’s revenues of $188.4 million increased 27.2% from the year-ago quarter and surpassed our estimate of $165 million.
Environmental solutions’ revenues (net) of $423.3 million increased 3.7% year over year and beat our estimate of $418.8 million.
Operating Results
Adjusted EBITDA for the quarter was $1.2 billion, which marked a 12% increase from the year-ago quarter, meeting our estimate. The adjusted EBITDA margin of 30.2% increased 120 basis points from the prior-year quarter, beating our estimate of 28.1%.
Balance Sheet & Cash Flow
Republic Services exited first-quarter 2024 with cash and cash equivalents of $91.6 million compared with $140 million at the end of the preceding quarter. The long-term debt (net of current maturities) was $11.4 billion compared with $11.9 billion at the end of fourth-quarter 2023.
RSG generated $811.5 million in cash from operating activities in the reported quarter. The adjusted free cash flow was $535 million. Capital expenditure in first-quarter 2024 was $514.5 million.
IT’s adjusted earnings (excluding 26 cents from non-recurring items) per share of $2.9 beat the Zacks Consensus Estimate by 16.3% and increased 1.7% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate marginally and improved 4.5% year over year.
MAN’s quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year mainly due to run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.4 billion lagged the consensus mark by 0.6% and dipped 7% year over year on a reported basis and 5% on a constant-currency basis.
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Republic Services (RSG) Earnings Surpass Estimates in Q1
Republic Services, Inc. (RSG - Free Report) reported mixed first-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate but revenues missing the same.
RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.5 beat the Zacks Consensus Estimate by 5.8% and increased 16.9% from the year-ago quarter. Revenues of $3.9 billion missed the consensus mark by a slight margin but increased 7.8% year over year.
The RSG stock has gained 32.2% over the past year, outperforming the 22.4% rally of the industry it belongs to and 25.2% growth of the Zacks S&P 500 Composite.
Republic Services, Inc. Price and EPS Surprise
Republic Services, Inc. price-eps-surprise | Republic Services, Inc. Quote
Segmental Revenues
Revenues from Collection totaled $2.7 billion, up 8.3% from the year-ago quarter, beating our estimate of $2.6 billion.
Revenues (net) in the Transfer and Landfill segments were $182.8 million and $404.6 million, rising 5.2% and 3% year over year, respectively. The Transfer and Landfill segments’ revenues missed our estimate of $197 million and $432.5 million, respectively.
The Other segment’s revenues of $188.4 million increased 27.2% from the year-ago quarter and surpassed our estimate of $165 million.
Environmental solutions’ revenues (net) of $423.3 million increased 3.7% year over year and beat our estimate of $418.8 million.
Operating Results
Adjusted EBITDA for the quarter was $1.2 billion, which marked a 12% increase from the year-ago quarter, meeting our estimate. The adjusted EBITDA margin of 30.2% increased 120 basis points from the prior-year quarter, beating our estimate of 28.1%.
Balance Sheet & Cash Flow
Republic Services exited first-quarter 2024 with cash and cash equivalents of $91.6 million compared with $140 million at the end of the preceding quarter. The long-term debt (net of current maturities) was $11.4 billion compared with $11.9 billion at the end of fourth-quarter 2023.
RSG generated $811.5 million in cash from operating activities in the reported quarter. The adjusted free cash flow was $535 million. Capital expenditure in first-quarter 2024 was $514.5 million.
Currently, Republic Services carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Gartner, Inc. (IT - Free Report) reported better-than-expected first-quarter 2024 results.
IT’s adjusted earnings (excluding 26 cents from non-recurring items) per share of $2.9 beat the Zacks Consensus Estimate by 16.3% and increased 1.7% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate marginally and improved 4.5% year over year.
ManpowerGroup Inc. (MAN - Free Report) reported mixed first-quarter 2024 results.
MAN’s quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year mainly due to run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.4 billion lagged the consensus mark by 0.6% and dipped 7% year over year on a reported basis and 5% on a constant-currency basis.