Republic Services, Inc. RSG reported mixed fourth-quarter 2024 results. 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 (EPS) (excluding 5 cents from non-recurring items) of $1.58 outpaced the Zacks Consensus Estimate by 15.3% and grew 12.1% from the year-ago quarter. Revenues of $4 billion missed the consensus mark by a slight margin but increased 5.6% year over year.
The RSG stock has gained 12.6% in the past six months, outperforming the 5.3% rally of the industry it belongs to and 11.7% growth of the Zacks S&P 500 Composite.
Republic Services, Inc. Price, Consensus and EPS Surprise
Republic Services, Inc. price-consensus-eps-surprise-chart | Republic Services, Inc. Quote
Republic Services’ Segmental Revenues
Revenues from Collection totaled $2.7 billion, up 3.5% from the year-ago quarter, missing our projection of $2.8 billion.
Revenues (net) in the Transfer and Landfill segments were $203 million and $443 million, increasing 8% and 5.5% on a year-over-year basis, respectively. The Transfer segment’s revenues missed our projection of $204.3 million, while the Landfill segment’s revenues met our estimate.
The Other segment’s revenues of $190 million rose 8% from the year-ago quarter’s actual and missed our expectation of $199.8 million. Environmental solutions’ revenues (net) of $482 million grew 16.7% year over year and surpassed our projection of $458.4 million.
Operating Results of RSG
Adjusted EBITDA for the quarter was $1.3 billion, increasing 9.4% from the year-ago quarter, beating our estimate of $1.2 billion. The adjusted EBITDA margin was 31%, up 110 basis points from the year-ago quarter, surpassing our estimate of 26.8%.
Balance Sheet & Cash Flow of RSG
Republic Services exited the fourth quarter of 2024 with cash and cash equivalents of $74 million compared with $83.4 million at the end of the third quarter of 2024. The long-term debt (net of current maturities) was $11.9 billion compared with $12 billion at the end of the preceding quarter.
RSG generated $1 billion in cash from operating activities in the fourth quarter of 2024. The adjusted free cash flow was $444 million. Capital expenditure was $497.6 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.
Republic Services’ 2025 Guidance
For 2025, RSG expects revenues of $16.85-$16.95 billion. The mid-point ($16.9 billion) of the guided range is lower than the Zacks Consensus Estimate for revenues of $16.92 billion.
The company expects the adjusted EPS to be $6.82-$6.90. The guided range is higher than the Zacks Consensus Estimate for earnings of $6.77 per share. The adjusted EBITDA view is $5.28-$5.33 million.
Earnings Snapshot
Broadridge Financial Solutions, Inc. BR reported impressive second-quarter fiscal 2025 results.
BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.
Gartner, Inc. IT posted better-than-expected fourth-quarter 2024 results.
IT’s adjusted earnings per share of $5.6 beat the Zacks Consensus Estimate by 69.3% and increased 79.3% from the year-ago quarter. Revenues of $1.7 billion surpassed the consensus estimate by 1.8% and improved 8.2% year over year.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpBroadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
Republic Services, Inc. (RSG) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
