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Republic Services to Report Q3 Earnings: What's in the Offing?

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Republic Services, Inc. (RSG - Free Report) is scheduled to release its third-quarter 2024 results on Oct. 29, after market close.

See Zacks Earnings Calendarto stay ahead of market-making news.

RSG has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 7.6%.

Republic Services, Inc. Price and EPS Surprise

 

Republic Services, Inc. Price and EPS Surprise

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

Republic Services’ Q3 Expectations

The Zacks Consensus Estimate for the company’s revenues is pegged at $4.1 billion, hinting at a 7.5% increase from the year-ago quarter’s reported figure. The top line is anticipated to have been fueled by improved segmental performances.

We expect revenues from the Collection segment to be $2.8 billion, suggesting 7.2% growth from the year-ago quarter’s actual. Landfill revenues (net) are anticipated at $448.5 million, implying a 2.8% increase from the third-quarter 2023 actual. Our estimate for Transfer revenues (net) is at $207.1 million, indicating marginal growth on a year-over-year basis. We expect Environmental Solutions revenues (net) of $451.6 million, suggesting growth of 11.6% from the year-ago quarter’s actual. The Other segment’s revenues are estimated at $192.3 million, implying an 18.6% increase from the year-ago quarter’s reported figure.

The consensus estimate for earnings per share is pegged at $1.6, suggesting a 5.2% rise from the year-ago quarter’s actual. The bottom line is likely to have been driven by strong margins.

We anticipate adjusted EBITDA of $1.3 billion, implying a 17% rise from the year-ago quarter’s actual. The EBITDA margin is expected to be 30.7%, suggesting a year-over-year increase of 100 basis points.

What Our Model Says About RSG

Our model predicts a likely 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 are reported with our Earnings ESP Filter.

RSG has an Earnings ESP of +1.84% 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 time around.

Corpay, Inc. (CPAY - Free Report) : The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $1 billion, suggesting a 5.7% rise from the year-ago quarter’s reported figure. For earnings, the consensus mark is pegged at $5 per share, indicating 10.5% growth from the year-ago quarter’s actual. The company beat the consensus estimate in three of the past four quarters and missed once, with an average surprise of 0.18%.

CPAY has an Earnings ESP of +0.08% and a Zacks Rank of 2 at present. The company is scheduled to post its third-quarter 2024 results on Nov. 7. You can see the complete list of today’s Zacks #1 Rank stocks here.

Mastercard (MA - Free Report) : The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues is pegged at $7.3 billion, indicating 11% growth from the year-ago quarter’s reported figure. For earnings, the consensus mark is pegged at $3.7 per share, suggesting a 10% rise from the year-ago quarter’s actual. The company beat the consensus estimate in the past four quarters, with an average surprise of 3.5%.

MA has an Earnings ESP of +0.94% and a Zacks Rank of 2 at present. The company is scheduled to declare its third-quarter 2024 results on Oct. 31.


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