We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.8 outpaced the Zacks Consensus Estimate by 11.7% and grew 17.5% from the year-ago quarter. Revenues of $4.1 billion missed the consensus mark by a slight margin, while it increased 6.5% on a year-over-year basis.
The top line has grown on the back of innovative technology in RSG’s recycling and waste collection routes, the development of polymer centers and Blue Polymers joint venture facilities, and advancements in fleet electrification.
The RSG stock has gained 25% year to date, outperforming the 14.4% rally of the industry it belongs to and 23.7% growth of the Zacks S&P 500 Composite.
YTD Price Performance
Image Source: Zacks Investment Research
Republic Services’ Segmental Revenues
Revenues from Collection totaled $2.7 billion, up 4.8% from the year-ago quarter, missing our projection of $2.8 billion.
Revenues (net) in the Transfer and Landfill segments were $211.6 million and $452.8 million, increasing 2.6% and 3.8% on a year-over-year basis, respectively. The Transfer and Landfill segments’ revenues outpaced our expectations of $207.1 million and $448.5 million, respectively.
The Other segment’s revenues of $205.3 million rose 26.7% from the year-ago quarter’s actual and surpassed our estimate of $192.3 million. Environmental solutions’ revenues (net) of $464.7 million grew 14.8% year over year and beat our projection of $451.6 million. The rollover contribution of acquisitions completed in the preceding year drove this segment’s revenues.
Operating Results of RSG
Adjusted EBITDA for the quarter was $1.3 billion, increasing 13.8% from the year-ago quarter, meeting our estimate. The adjusted EBITDA margin was 32%, up 210 basis points from the year-ago quarter, missing our projection of 32.7%.
Balance Sheet & Cash Flow of RSG
Republic Services exited the third quarter of 2024 with cash and cash equivalents of $83.4 million compared with $490.6 million at the end of the second quarter of 2024. The long-term debt (net of current maturities) was $12 billion compared with $11.5 billion at the end of the preceding quarter.
RSG generated $1 billion in cash from operating activities in the third quarter of 2024. The adjusted free cash flow was $585.1 million. Capital expenditure was $439.5 million.
WM’s quarterly adjusted earnings of $2 per share beat the consensus mark by 5.4% and gained 20.3% on a year-over-year basis. Total revenues of $5.6 billion surpassed the consensus mark by 2% and grew 7.9% from the year-ago quarter.
TRU’s quarterly adjusted earnings (adjusting 69 cents from non-recurring items) of $1 per share surpassed the consensus mark by 2% and increased 14.3% on a year-over-year basis. Total revenues of $1.1 billion outpaced the consensus mark by 2.2% and increased 12% from the year-ago quarter.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Republic Services Earnings Surpass Estimates in Q3, Revenues Miss
Republic Services, Inc. (RSG - Free Report) reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.
See Zacks Earnings Calendar to stay ahead of market-making news.
RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.8 outpaced the Zacks Consensus Estimate by 11.7% and grew 17.5% from the year-ago quarter. Revenues of $4.1 billion missed the consensus mark by a slight margin, while it increased 6.5% on a year-over-year basis.
The top line has grown on the back of innovative technology in RSG’s recycling and waste collection routes, the development of polymer centers and Blue Polymers joint venture facilities, and advancements in fleet electrification.
The RSG stock has gained 25% year to date, outperforming the 14.4% rally of the industry it belongs to and 23.7% growth of the Zacks S&P 500 Composite.
YTD Price Performance
Republic Services’ Segmental Revenues
Revenues from Collection totaled $2.7 billion, up 4.8% from the year-ago quarter, missing our projection of $2.8 billion.
Revenues (net) in the Transfer and Landfill segments were $211.6 million and $452.8 million, increasing 2.6% and 3.8% on a year-over-year basis, respectively. The Transfer and Landfill segments’ revenues outpaced our expectations of $207.1 million and $448.5 million, respectively.
The Other segment’s revenues of $205.3 million rose 26.7% from the year-ago quarter’s actual and surpassed our estimate of $192.3 million. Environmental solutions’ revenues (net) of $464.7 million grew 14.8% year over year and beat our projection of $451.6 million. The rollover contribution of acquisitions completed in the preceding year drove this segment’s revenues.
Operating Results of RSG
Adjusted EBITDA for the quarter was $1.3 billion, increasing 13.8% from the year-ago quarter, meeting our estimate. The adjusted EBITDA margin was 32%, up 210 basis points from the year-ago quarter, missing our projection of 32.7%.
Balance Sheet & Cash Flow of RSG
Republic Services exited the third quarter of 2024 with cash and cash equivalents of $83.4 million compared with $490.6 million at the end of the second quarter of 2024. The long-term debt (net of current maturities) was $12 billion compared with $11.5 billion at the end of the preceding quarter.
RSG generated $1 billion in cash from operating activities in the third quarter of 2024. The adjusted free cash flow was $585.1 million. Capital expenditure was $439.5 million.
Republic Services carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Republic Services’ Peers
Waste Management Inc. (WM - Free Report) reported impressive third-quarter 2024 results.
WM’s quarterly adjusted earnings of $2 per share beat the consensus mark by 5.4% and gained 20.3% on a year-over-year basis. Total revenues of $5.6 billion surpassed the consensus mark by 2% and grew 7.9% from the year-ago quarter.
TransUnion (TRU - Free Report) reported impressive third-quarter 2024 results.
TRU’s quarterly adjusted earnings (adjusting 69 cents from non-recurring items) of $1 per share surpassed the consensus mark by 2% and increased 14.3% on a year-over-year basis. Total revenues of $1.1 billion outpaced the consensus mark by 2.2% and increased 12% from the year-ago quarter.