Back to top

Image: Bigstock

Republic Services to Report Q1 Earnings: Here's What You Should Know

Read MoreHide Full Article

Republic Services, Inc. (RSG - Free Report) is scheduled to release its first-quarter 2025 results on April 24, after market close.

RSG has an impressive earnings surprise history. In the trailing four quarters, it surpassed the Zacks Consensus Estimate, with an average surprise of 9.5%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Republic Services, Inc. Price, Consensus and EPS Surprise

 

Republic Services’ Q1 Expectations

The Zacks Consensus Estimate for the company’s revenues is pegged at $4.1 billion, indicating a 5.1% increase from the year-ago quarter’s reported figure. The top line is expected to have benefited from innovative technology on recycling and waste collection routes. The RISE digital platform, which enables cameras to identify overfilled containers and recycling contamination, is anticipated to have provided a boost to revenues.

We anticipate revenues from the Collection segment to be $2.7 billion, suggesting a 3.2% rise from the year-ago quarter’s actual. Landfill revenues (net) are anticipated at $440.5 million, implying year-over-year 8.9% growth. Our expectation for Transfer revenues (net) is at $203.8 million, hinting at an 11.5% increase on a year-over-year basis. We expect Environmental Solutions revenues (net) of $466.3 million, suggesting a year-over-year jump of 10.2%. The Other segment’s revenues are estimated at $199.5 million, indicating a 5.9% year-over-year increase.

We anticipate adjusted EBITDA of $1.2 billion, implying a 6.2% rise from the year-ago quarter’s actual. The EBITDA margin is expected to be 30.5%, suggesting a year-over-year decline of 40 basis points.

The consensus estimate for earnings per share is pegged at $1.52, indicating 4.8% growth from the year-ago quarter’s actual. Despite the anticipated weak margins, we believe that robust top-line growth is expected to have fueled the bottom line.

What Our Model Says About RSG

Our proven model does not conclusively predict an earnings beat for Republic Services 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 -0.30% and a Zacks Rank of 3.

Stocks to Consider

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.

WNS (Holdings) Limited (WNS - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2025 revenues is pegged at $325.5 million, indicating a marginal year-over-year decline. For earnings, the consensus mark is pegged at $1.41, suggesting 25.9% growth from the year-ago quarter’s reported figure. The company beat the consensus estimate in the past four quarters, with an average surprise of 6.1%.

WNS carries an Earnings ESP of +0.47% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to declare its fourth-quarter fiscal 2025 results on April 24.

Visa (V - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter fiscal 2025 revenues is pegged at $9.6 billion, indicating year-over-year growth of 9%. For earnings, the consensus mark is pegged at $2.68, suggesting 6.8% growth from the year-ago quarter’s reported figure. The company beat the consensus estimate in the past four quarters, with an average surprise of 3%.

V carries an Earnings ESP of +0.10% and a Zacks Rank of 3 at present. The company is scheduled to declare its second-quarter fiscal 2025 results on April 29.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Visa Inc. (V) - free report >>

Republic Services, Inc. (RSG) - free report >>

WNS (Holdings) Limited (WNS) - free report >>

Published in