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Republic Services (RSG) Q4 Earnings: What's in the Cards?

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Republic Services, Inc. (RSG - Free Report) is slated to release fourth-quarter 2018 results on Feb 7, after market close.

Over the past year, shares of Republic Services have gained 18.5%, outperforming the 12.9% rise of the industry it belongs to and 2.4% gain of the Zacks S&P 500 composite.

 

Let’s check out the expectations in detail.

Revenues Likely to Decline Year Over Year

The Zacks Consensus Estimate for fourth-quarter 2018 revenues stands at $2.54 billion, indicating year-over-year decline of 0.9%. The downside is likely to result from the adoption of the new revenue recognition standard and weak recycling processing and commodity sales. This is, however, expected to be partially offset by the positive impact of internal growth and acquisitions.

In third-quarter 2018, revenues of $2.56 billion improved marginally year over year, which included a positive impact of 2.2% due to internal growth and 1.9% from acquisitions.

Bottom Line Likely to Improve

The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at 78 cents, indicating year-over-year growth of 27.9%. The bottom line should benefit from the tax reform policy, which is likely to be partially offset by headwind from recycling business.

In third-quarter 2018, adjusted earnings of 82 cents per share increased 22.4% year over year.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP . Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Republic Services has a Zacks Rank #1 and an Earnings ESP of 0.00%.

Republic Services, Inc. Price and EPS Surprise

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on fourth-quarter 2018 earnings:

First Data has an Earnings ESP of +3.17% and a Zacks Rank #2. The company is scheduled to release results on Feb 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

IQVIA Holdings (IQV - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. The company is slated to report results on Feb 14.

Fiserv has an Earnings ESP of +0.03% and a Zacks Rank #3. The company is scheduled to release results on Feb 7.

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