Republic Services Cuts Forecast after Q1 Miss; Shares Plunge (RSG)

By Staff,

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Waste disposal specialist Republic Services, Inc. ( RSG ) on Friday posted lower-than-expected first quarter earnings results and lowered its full-year outlook, sending its shares plummeting its premarket trading.

The Phoenix-based company reported first quarter net income of $142.9 million, or 38 cents per share, compared with $158.2 million, or 41 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 38 cents per share.

Revenue rose nearly 1% from last year to $1.98 billion.

On average, Wall Street analysts expected a higher profit of 42 cents per share, on slightly lower revenue of $1.97 billion.

Looking ahead, RSG lowered its full-year 2012 earnings forecast to a range of $1.86 to $1.90 per share, down from a prior outlook of $1.98 to $2.02.

Republic Services shares fell $2.14, or -6.9%, in premarket trading Friday.

The Bottom Line
Shares of Republic Services ( RSG ) have a 2.83% dividend yield, based on last night's closing stock price of $31.14. The stock has technical support in the $27-$28 price area. If the shares can firm up, we see overhead resistance around the $33-$35 price levels.

Republic Services, Inc. ( RSG ) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: RSG

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